Market Chatter: China's New Tariffs to Affect US-Made Drugs, Increase Costs

MT Newswires Live04-15

Multiple US-manufactured medicines, including treatments for cancer and diabetes, are now subject to new Chinese tariffs that could increase drugmakers' costs, Reuters reported Tuesday, citing regulatory filings from China.

According to records from China's National Medical Products Administration, pharmaceutical firms like AstraZeneca (AZN), Eli Lilly (LLY), Sanofi (SNY), and GSK (GSK) produce drugs in the US that are sold in China, the report said.

Industry analysts warn that additional costs resulting from these tariffs may either raise prices or reduce the availability of specific drugs in China, as shifting production locations would be challenging in the short term, the report said.

The US government is also investigating whether pharmaceutical imports pose a national security risk, which could result in increased duties on foreign drugs, the report said.

AstraZeneca, Eli Lilly, Sanofi, and GSK did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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