US President Donald Trump has now planned to levy significant tariffs on medication with the intention of getting drug production back into the US. He spoke about the issue of not being able to produce sufficient antibiotics as a ‘tremendous problem’.
During a Republican Party fundraiser, Trump announced the plan, saying: “We’re going to be announcing very shortly a major tariff on pharmaceuticals. And when they hear that, they will leave China.” He further added that the tariffs would be at an unprecedented level, which would be announced soon. In the past, the majority of nations, including the US, have maintained little or no tariffs on completed drugs, after a World Trade Organisation (WTO) deal in 1995 to make healthcare affordable. But the new action is likely to upset the pharmaceutical sector and may impact essential drugs, including popular weight loss injections like Mounjaro and Ozempic, which are commonly used by millions in the UK.
One of Trump’s top advisers, Elon Musk, has openly confessed to taking Ozempic, the prescription medication in the spotlight for its properties as a weight loss agent. Musk jokingly posted on social media, “Like Cocaine Bear, but Santa and Ozempic,!” subsequently clarified he was on Mounjaro, a type of the drug. Specialists now warn Trump’s proposed tariffs could drive up the cost and impact the availability of these groundbreaking obesity treatments, specifically in the UK.
Malcolm Harrison, chairman of the Company Chemists’ Association, raised concerns about the potential disruption to weight loss drug supplies, urging the UK Government to monitor the situation closely. “Medicines supply chains globally are complex. We would encourage the government to keep a close eye on the situation,” he said. British industry leaders are particularly worried about the impact on top-selling weight-loss drugs like Mounjaro and Ozempic.
London School of Hygiene and Tropical Medicine Professor Martin McKee warned that tariffs like these could lead to “chaos” in the drugs supply chain, adding, “We don’t know how individual medicines. will be affected.” He further suggested that tariff decisions should not be rushed by those who fail to understand the subtleties of trade negotiations.
Royal Pharmaceutical Society President Professor Claire Anderson seconded these concerns, stating that these tariffs would result in frustration, anxiety, and even patient harm due to supply chain vulnerabilities.
Pharmaceutical companies are now rethinking their strategy after Trump’s announcement. David Ricks, the CEO of Eli Lilly, whose Tirzepatide (active ingredient in Mounjaro) is made in Ireland, saw its stock price fall. The company may rethink its operations to avoid tariffs, the CEO confirmed.
European pharma association EFPIA, which comprises Novo Nordisk (the manufacturer of Ozempic and Wegovy), raised concerns over the effect of the tariffs, although some experts are of the opinion that manufacturers, such as Novo Nordisk, are able to absorb the added costs. Dr. Andrew Hill from the University of Liverpool noted that, although semaglutide (the active substance in Ozempic) is cheap, the drug itself is being marketed at a very high price, and Novo Nordisk is reaping high profits.
In terms of patients, it is estimated that 500,000 NHS users in the UK and approximately 15 million individuals in the US use weight loss injections, which have the potential to cause considerable weight loss and lower the risk of heart attacks and strokes. Yet, some users experience side effects such as tiredness, constipation, and hair loss. These medications are prescribed to individuals with a BMI of over 35 or with specific health issues. Fraudulent online retailers have also been a concern, with the Royal Pharmaceutical Society warning against the sale of unregulated or contaminated drugs.
