250% US tariffs pose threat to Canada's pharma industry

Economists warn against soaring prices for customers, supply chain disruptions

The proposed US tariffs of up to 250 percent on pharmaceuticals could trigger shortages, inflate costs and disrupt the tightly integrated drug trade with Canada, health economists say.

"A sudden, steep tariff would raise procurement costs for manufacturers and distributors, as the US sources most of its active pharmaceutical ingredients and many finished medicines from abroad," said Boshen Jiao, an assistant professor of pharmaceutical and health economics at the University of Southern California.

United States President Donald Trump said on Aug 5 that the planned tariffs on imported pharmaceuticals could eventually reach 250 percent, in a bid to bring drug manufacturing back to the country.