Trump Tariffs on Pharmaceuticals Spark Supply Chain Resilience Push
20 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/06/included-drugs/
US President Donald Trump announced a reciprocal tariff measure of 32% targeting Taiwan, and hinted at potential future tariffs on pharmaceuticals. In response to this announcement, Yin Wei-Ying—president of Taiyen BioScience’s public affairs department and chairperson of the Generic Pharmaceutical Association’s Public Affairs Policy Committee—stated today that the government should prioritize building resilience within Taiwan's drug supply chain by developing short-, medium-, and long-term policies for generic drug development.
Regarding Trump’s potential inclusion of pharmaceuticals in future tariffs, Huang Jin-Shun (president of the Federation of Taiwanese Pharmacists’ Associations) cautioned that while only a small proportion of medicines are currently exported from Taiwan to America, indirect impacts on global supply chains remain possible. He warned that continued reliance on original brand-name medications without sufficient stockpiling could lead to shortages; therefore, he urged the government to use this opportunity to educate citizens about utilizing domestically produced generic drugs.
Yin Wei-Ying noted Taiyen BioScience’s active expansion into international markets and successful entry into the US market with Lipo-AB Amphotericin, a self-developed difficult-to-manufacture generic drug. Given current geopolitical uncertainties, they have initiated cost-saving measures to monitor how reciprocal tariffs will affect their operations.
Yin Wei-Ying emphasized that the government should begin by strengthening Taiwan’s pharmaceutical supply chain and formulating short-, medium-, and long-term policies for developing generic drugs. He explained that high tariffs could prompt foreign drug manufacturers or raw material suppliers to adjust production capacity, increase prices, or redirect products toward other major markets—potentially causing shortages of essential medicines in the near term.
For mid-to-longer-term strategies, Yin Wei-Ying recommended accelerating development towards “pay-for-performance” (P4P) policies that prioritize drug efficacy and payment. This approach would reduce dependence on original brand-name drugs from patent-expired manufacturers while simultaneously enhancing domestic pharmaceutical production capabilities.
Regarding Trump’s potential inclusion of pharmaceuticals in future tariffs, Huang Jin-Shun (president of the Federation of Taiwanese Pharmacists’ Associations) cautioned that while only a small proportion of medicines are currently exported from Taiwan to America, indirect impacts on global supply chains remain possible. He warned that continued reliance on original brand-name medications without sufficient stockpiling could lead to shortages; therefore, he urged the government to use this opportunity to educate citizens about utilizing domestically produced generic drugs.
Yin Wei-Ying noted Taiyen BioScience’s active expansion into international markets and successful entry into the US market with Lipo-AB Amphotericin, a self-developed difficult-to-manufacture generic drug. Given current geopolitical uncertainties, they have initiated cost-saving measures to monitor how reciprocal tariffs will affect their operations.
Yin Wei-Ying emphasized that the government should begin by strengthening Taiwan’s pharmaceutical supply chain and formulating short-, medium-, and long-term policies for developing generic drugs. He explained that high tariffs could prompt foreign drug manufacturers or raw material suppliers to adjust production capacity, increase prices, or redirect products toward other major markets—potentially causing shortages of essential medicines in the near term.
For mid-to-longer-term strategies, Yin Wei-Ying recommended accelerating development towards “pay-for-performance” (P4P) policies that prioritize drug efficacy and payment. This approach would reduce dependence on original brand-name drugs from patent-expired manufacturers while simultaneously enhancing domestic pharmaceutical production capabilities.