Tariff collection agency won't comment on preparations for drug tariffs

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(The Center Square) – U.S. Customs and Border Protection, the federal agency charged with collecting tariff revenue, said it won't comment on preparations for a fresh wave of tariffs ordered by the president. 


"CBP is unable to comment on any potential future tariff actions," a spokesperson for the agency told The Center Square after the outlet inquired Sept. 29 about how CBP would identify patented pharmaceutical drugs that Trump said he would hit with a 100% tariff starting Oct. 1. 


Trump has yet to follow through on that plan. The tariffs were set to take effect on Oct. 1, but they have been put on hold as the administration works to strike deals with major companies. The president has already struck deals with at least two drug companies. 


Trump wants to use tariffs to push drug makers to boost U.S. production and strengthen U.S. supply chains. Trump has also said tariffs could help lower drug costs.


In late September, Trump announced a fresh wave of tariffs in a series of Truth Social posts. The president said a 100% tariff on imported patented drugs will start Oct. 1, with exceptions for companies building manufacturing plants in the U.S.


The Center Square asked Customs and Border Protection if the Harmonized Tariff Schedule differentiates between patented and generic drugs and how CPB planned to distinguish between patented drugs and generic drugs for tariff collection purposes. The Center Square also asked if the agency would be ready to enforce such tariffs and if the agency had a list of drug companies that would be exempted from the 100% tariff on patented drugs.


Customs and Border Protection responded to The Center Square during the third week of the partial government shutdown. Since Oct. 1, a congressional funding lapse has closed many government operations.


At the same time Trump announced 100% tariffs on patented drugs, he also said he planned to put import duties on a range of other consumer goods, including heavy-duty trucks and furniture.


The American Hospital Association previously warned about supply issues. In May, the AHA submitted comments to the Department of Commerce on its Section 232 national security investigation of pharmaceuticals and pharmaceutical ingredients imports. The AHA urged the administration to maintain tariff exceptions, particularly for products already experiencing shortages and for countries that produce a significant portion of the U.S. pharmaceuticals and pharmaceutical ingredients market supply.


"The lives of patients often depend on the ready availability of drugs to respond to emergent conditions like heart attacks and infections, and other critical illnesses like cancer and organ failure," the letter said. "The supply chain for pharmaceutical products is highly complex and requires hospitals to draw on both domestic and international sources. For many patients, even a temporary disruption in their access to these needed medications could put them at significant risk."


Monica Gorman served as special assistant to the president for manufacturing and industrial policy and co-chair of the White House Supply Chain Disruptions Task Force from 2022-25. She previously told The Center Square that Trump's high tariffs on imported drugs could miss most Americans because more than 90% of U.S. prescriptions are filled with generic drugs. Trump targeted only patented drug imports for his tariffs. That means most Americans won't notice a difference at the pharmacy counter, Gorman said.


Alex Schriver, senior vice president of Pharmaceutical Research and Manufacturers of America, said money spent on tariffs cannot be used to fund cures.


"Most innovative medicines prescribed in America are already made in America. PhRMA companies continue to announce hundreds of billions in new U.S. investments thanks to President Trump's pro-growth tax and regulatory policies," he said in a statement. "Tariffs risk those plans because every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or the development of future treatments and cures."


A tariff is a tax on imported goods that the importer pays. The importer pays the cost of the duties directly to U.S. Customs and Border Protection, a federal agency.

 

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