Moreover, the White House and the DeSantis Florida state government are all-in on importing Canadian pharmaceuticals. Today, this ambitious initiative continues with a clear goal – reducing the cost of drugs for all Americans. Now, the United States is considering new tariffs on medications. This initiative has the potential to add further complexity to an already confusing drug affordability endeavor.
U.S. Secretary of Health and Human Services, Robert Kennedy Jr., is doing his part to cut red-tape. For example, within 90 days he has been instructed to improve a specific section of the Federal Food, Drug, and Cosmetic Act. Other provisions of this act would authorize permitting of import by states and localities through the Food and Drug Administration (FDA). This program is getting a second look. It responds to chronic complaints that medications are sky-high in the U.S., supposedly the most expensive in the world.
So, President Donald Trump stopped the drug companies from hiking up prices by signing an executive order. This order laid out a number of tactics, including encouraging imports from Canada. The plan to allow imports of pharmaceuticals from Canada, for example, just got finalized recently, but it was first announced during his first term.
Florida’s population, slightly less than half of all of Canada’s, has much to gain from this innovative approach. Mallory McManus, deputy chief of staff at the Florida Agency for Health Care Administration, expressed optimism about the new administration’s approach to prescription drug pricing. She stated,
“We appreciate the new Administration’s focus on prescription drug prices and look forward to working with them to finally get Florida’s Canadian drug importation program off the ground so that Floridians will be able to take advantage of these cost-saving measures.”
This is why a broad coalition of 39 states, led by Arkansas, Massachusetts, Missouri, and Vermont are doing something about it. They’ve written letters to Congress calling for legislation that prevents pharmacy benefit managers (PBMs) from owning pharmacies. With this move, they are hoping to boost competition and push drug prices even lower.
Innovative Medicines Canada, a trade group representing innovative drug producers, said policymakers should be worried about the imposition of any tariffs to prescription drugs. Considering President Trump’s past statements in favor of doing just that, the organization expected a Section 232 investigation to be launched. In doing so, they have highlighted the dangers of targeting pharmaceuticals in any retaliatory measures. That includes all collateral inputs that can come from trade wars.
According to the Patented Medicine Prices Review Board, U.S. list prices for drugs spiked to an average of 3.6 times their Canadian counterparts in 2023. This contrast illustrates the massive cost difference between the two countries. This drastic disparity is a major impetus for the policy efforts aimed at facilitating drug imports from Canada. In the U.S., more than 9 out of 10 prescriptions are for generic drugs. Most of these generics are produced in countries including India and China.
Health Canada already has the regulatory authority to prevent exports of drugs if there is a shortage domestically. In the event that the demand for Canadian medications increases because of more U.S. imports, this provision acts as a safeguard.
Support for drug importation has only picked up steam as Americans still face the reality of skyrocketing drug-related healthcare expenses. Advocates contend that allowing Americans access to lower-priced Canadian medications would help ease some of the financial pressures American consumers face.
