Trade Tariffs on Canadian Pharmaceuticals— Implications for US Drug Supply and Costs

JAMA

2025-03-31

(Press-News.org) About The Study: Although Canada is not the largest supplier of medications to the U.S., tariffs could raise costs and strain supply chains. This study estimates that $3 billion in U.S. pharmaceuticals depend on Canadian manufacturing, with 25% tariffs adding $750 million in cost. Although the Inflation Reduction Act provisions limit cost pass-through to some payers (i.e., Medicare), manufacturers may still adjust production or alter distribution, increasing supply chain fragility.

Corresponding Author: To contact the corresponding author, Mina Tadrous, PharmD, PhD, email mina.tadrous@utoronto.ca.

To access the embargoed study: Visit our For The Media website at this link https://media.jamanetwork.com/

(doi:10.1001/jama.2025.4583)

Editor’s Note: Please see the article for additional information, including other authors, author contributions and affiliations, conflict of interest and financial disclosures, and funding and support.

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Trade Tariffs on Canadian Pharmaceuticals— Implications for US Drug Supply and Costs

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