Taipei: U.S. President Donald Trump's planned 100 percent tariff on branded and patented drugs imported into the United States should have little impact on Taiwan, though prices of imported medicines could be affected, Health Minister Shih Chung-liang said Friday.
According to Focus Taiwan, Trump announced via Truth Social that starting October 1, the U.S. will impose a substantial tariff on all branded or patented pharmaceutical goods entering the country. However, the measure exempts companies that are establishing drug manufacturing operations within the United States.
Facing the latest tariff threat issued by the U.S. administration, Shih stated that the government will review official documents related to the new policy. However, he expressed confidence that Taiwan's pharmaceutical exports would remain largely unaffected. Shih clarified that the tariff targets branded drugs, known locally as "original drugs," and medicines still under patent, often referred to as "new drugs."
Moreover, the planned tariff does not extend to active pharmaceutical ingredients (APIs) or generic drugs, which constitute the majority of Taiwan's drug exports to the U.S. Shih noted that since APIs are excluded and Taiwan exports a limited number of patented drugs, the overall impact on the country's pharmaceutical exports is expected to be minimal.
While the policy is expected to have a negligible effect on exports, Shih acknowledged that it might influence the prices of imported drugs. Although domestic generic medicines can replace some branded drugs once their patents expire, Shih highlighted that out of 214 patented medicines imported by Taiwan, 75 are deemed irreplaceable and could potentially see price hikes over time.
The minister did not elaborate on why U.S. tariffs on imported drugs would impact prices in Taiwan. However, industry experts speculate that global manufacturers might raise drug prices in other markets to offset the increased costs from U.S. tariffs. To address this possibility, the Executive Yuan has allocated NT$20 billion (US$655.10 million) to support the national health insurance fund, aiming to stabilize the domestic market and ensure public access to medicines if imported drug prices fluctuate.