BIO Survey: Tariffs May Reduce Access, Delay Innovation, Create Red Tape

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The latest tariffs to be announced by President Donald Trump’s administration, on March 27, 2025, are a 25% tax on auto imports, adding to 25% tariffs on Mexico and Canada—with a lower 10% tax on Canadian energy products—a 20% import tax on China, and 25% tariffs on steel and aluminum imports (1).

As the Associated Press reported, the Administration may be targeting pharmaceutical drugs, along with computer chips, lumber, and copper, as one of its next areas where stiff taxes may be imposed.

Just before the new auto import tariffs were announced, the Biotechnology Innovation Organization (BIO), a Washington, DC-based trade association, released on March 26, 2025 results of a membership survey evaluating the health of the global biomedical supply chain as it relates to the potential for higher tariffs (2).

In analyzing the responses to the survey, BIO said that almost 90% of biotech companies based in the United States said they rely on imported components for at least half of their products that are FDA approved (2). Given that statistic, a press release from BIO outlined three key tariff concerns expressed in the survey:

• Reduced access to affordable medicines. This was an across-the-board concern in the survey, as 94% of biotech firms said they anticipated “surging” manufacturing costs if tariffs are imposed on imports out of the European Union (EU).
• Stalling of medical innovation. Proposed tariffs on the EU could also, according to the survey, force approximately half of companies to find new research and/or manufacturing partners—with half of survey respondents saying they would either have to redraw or possibly delay their regulatory filings.
• Creation of more red tape. Four out of five (80%) biotech firms surveyed say they would need at least a year to find alternate suppliers, and nearly half (44%) report that they would theoretically need two years or more (2).

"This survey demonstrates the far-reaching and potentially damaging impacts of the proposed tariffs on our biotechnology industry, on biomedical research and on patients,” BIO President and CEO John F. Crowley said in the release. “We fully support strong policies and programs that incentivize the manufacture of medicines here in America. Re-onshoring key parts of the biotechnology supply chain to the US and our allies and strengthening the American manufacturing base should be a high priority for both national and economic security. It will take years, though, for this shift, and we need to be mindful of the negative consequences of these proposed tariffs. We look forward to working with the Administration and Congress to develop incentives and policies that drive private sector dollars to spur a renaissance of US biotech manufacturing."

Pharmaceutical Technology® took a look at how the industry might respond to tariffs in the early days of the new Trump Administration (3). Since then, more experts have weighed in.

As part of the coverage of DCAT Week 2025, Joseph Principe, chief commercial officer at Abzena, discussed the impact of the geopolitical climate on the bio/pharma industry (4). That interview can be viewed in full at this link.

Also, Episode 13 of the “Behind the Headlines” series, from March 20, takes a look at these impacts (5). Click here for that video roundtable.

References

1. Boak, J. Trump Places 25% Tariff on Imported Autos, Expecting to Raise $100 billion in Tax Revenues. APnews.com, March 27, 2025.
2. Biotechnology Innovation Organization. New Survey: U.S. Biotechs Warn Tariffs Could Impede Access to Cures, Stifle Innovation. Press Release. March 26, 2025.
3. Lavery, P. Pharmaceutical Industry Responds to Proposed Trump Administration Tariffs. PharmTech.com, Feb. 4, 2025.
4. Haigney, S. DCAT Week 2025: Impact of Geopolitical Climate on Biopharma. PharmTech.com, March 18, 2025.
5. Spivey, C. Behind the Headlines: Episode 13; Budget Cuts, Reshoring, and Biotech Buyouts. PharmTech.com, March 20, 2025.