By: Randall Rutta, CEO 

The Administration has proposed new tariffs on pharmaceutical products and ingredients through a presidential action issued pursuant to a Section 232 investigation under the Trade Expansion Act. The policy is linked to efforts to encourage “most favored nation” (MFN) pricing agreements between manufacturers and the federal government. 

This executive action would impose tariffs on certain imported medicines and related products, with rates varying based on company actions and country of origin. Companies that have not signed or engaged in MFN negotiations could face tariffs as high as 100 percent, while lower rates may apply to companies investing in domestic manufacturing or products from key trading partners. While key implementation details remain under development, the order reflects a policy approach that links drug pricing, supply chain considerations, and national security objectives. 

What This Could Mean for Patients 

The National Health Council (NHC) supports efforts to improve affordability. However, policies that introduce new cost pressures or disrupt established supply chains may have unintended consequences for patient access, continuity of care, and treatment affordability. Patients already navigate a complex and often fragmented health care system, and additional policy changes and pressures can increase stress, uncertainty, and barriers to timely, appropriate care. 

Keeping Patients at the Center 

As this executive order is implemented, it will be critical to ensure that efforts to lower costs do not introduce new barriers to access or disrupt patient care. 

• • Access and affordability: Tariffs applied to finished products or key inputs may increase costs across the supply chain, with the potential to affect patient out-of-pocket costs, formulary design, and treatment availability. 
  • Supply chain stability: Changes to sourcing and manufacturing patterns may introduce disruption risks, particularly for therapies with limited manufacturing redundancy or complex global supply chains. 
  • Innovation: Patients rely on new and improved treatments; policy uncertainty and pricing constraints may slow investment in research and development, potentially delaying access to future therapies. 
  • Domestic manufacturing: Patients benefit from a stable and reliable supply of treatments. While expanding domestic manufacturing can strengthen long-term resilience, it will take time and may not address near-term disruptions that affect access or affordability. 

The NHC encourages: 

• • Patient-centered approaches to affordability that preserve access to needed treatments 
  • Careful calibration of tariff implementation to minimize unintended disruptions to patient care and treatment continuity 
  • Ongoing engagement with patient organizations to better understand real-world patient experience and access challenges 
  • Policies that support both continued biomedical innovation and long-term system sustainability 

Looking Ahead 

The NHC will continue to monitor implementation developments and assess their implications for patients and caregivers. Efforts to address affordability and strengthen supply chain resilience are important policy objectives; however, their success will depend on careful implementation that maintains patient access to medically necessary treatments without disruption.