Table of Contents
- 1. Pharma Exports: Navigating US Tariffs
- 2. Uncertainty Surrounding Tariff Application
- 3. navigating the Future
- 4. Given the potential impact of tariffs on Irish pharmaceutical exports, what specific actions are Irish pharma companies taking to mitigate risks and adapt to potential changes in the trade landscape?
- 5. The future of Irish Pharma in US Trade: An Interview with Ailish Reynolds
- 6. Map of the Current Landscape
- 7. The Tariff Conundrum
- 8. Preparing for an Uncertain Future
- 9. Beyond the Bottom Line
- 10. Ailish’s Takeaway
The Irish pharmaceutical industry is closely watching the potential impact of US tariffs on its exports,especially as President Trump has hinted at imposing tariffs on pharmaceuticals as part of a broader trade strategy.
Michael Lohan, a prominent figure in the industry, revealed that the majority of pharmaceutical products that leave Ireland for the US are intermediary products, requiring further processing before they reach consumers. This raises questions about the point at which US tariffs would be applied in the complex global supply chain.
Uncertainty Surrounding Tariff Application
“If you have an unfinished product, it needs to be finished and completed before it is indeed turned into revenue, and sale,” said Lohan. “so the point at which the tariff is applied – is it the point of sale, or the point of transfer as it goes through a supply chain? I think that is a distinct difference.”
Lohan emphasized that under current World trade Organization rules, pharmaceutical exports are exempt from tariffs. Though, President Trump’s recent statements suggest a shift in policy, with the potential for tariffs reaching 25% and perhaps increasing over time.
“It’ll be 25pc and higher,and it’ll go very substantially higher over a course of a year,” the US president said,seeking to incentivize companies to re-evaluate their strategies.
The pharmaceutical industry is now grappling with the uncertainty surrounding US tariffs. Companies are likely to explore various options, including adjusting supply chains, sourcing alternative raw materials, and potentially seeking negotiations with the US government. the outcome of this situation will have significant implications for both the Irish and US economies.
It is essential for businesses operating in this sector to stay informed about developments and prepare for potential scenarios. Implementing strategies that mitigate the impact of tariffs, while remaining compliant with international trade regulations, will be crucial for navigating this evolving landscape.
Given the potential impact of tariffs on Irish pharmaceutical exports, what specific actions are Irish pharma companies taking to mitigate risks and adapt to potential changes in the trade landscape?
The future of Irish Pharma in US Trade: An Interview with Ailish Reynolds
Map of the Current Landscape
Archyde News: Ailish, thank you for joining us today. To kick things off, can you paint a picture of the current situation regarding US tariffs and their potential impact on Irish pharmaceutical exports?
ailish Reynolds: Thanks for having me. as you know, the Irish pharma industry is on tenterhooks due to President Trump’s tariff threats.We’re sticking with current WTO rules for now, but there’s a real fear that we could see tariffs as high as 25% or more, with the potential for further increases.
The Tariff Conundrum
Archyde News: Michael Lohan previously mentioned the uncertainty around when these tariffs would be applied – at the point of sale or earlier in the supply chain. Can you elaborate on this?
Ailish Reynolds: Indeed, it’s a bit of a gray area. Most of our exports are intermediate products, not the final versions that end up in consumers’ hands. So, the question becomes: do tariffs kick in when these products cross the US border, or when they’re sold to consumers? It’s a crucial distinction that could considerably affect our costs and pricing.
Preparing for an Uncertain Future
Archyde News: With such uncertainty, what strategies are pharma companies considering to navigate this evolving landscape?
Ailish reynolds: Companies are exploring multiple options – adjusting supply chains, sourcing alternative raw materials, even lobbying the US government. We’re all keeping a close eye on developments and preparing for various scenarios. It’s a complex situation, and we’re doing our best to remain flexible and responsive.
Beyond the Bottom Line
Archyde News: Beyond the financial implications, what potential impacts do you foresee on the industry and the broader economy?
Ailish reynolds: If tariffs materialize, they’ll undoubtedly increase costs and potentially disrupt supply chains. But it’s not just about the pharma industry; it could have ripple effects across the US and Irish economies. Jobs, investment, and even patient access to medicines could be at stake. It’s a delicate balance we’ll need to navigate carefully.
Ailish’s Takeaway
Archyde News: Lastly, what advice would you give to businesses in the pharma industry as they navigate this uncertain trade climate?
Ailish Reynolds: Stay informed, stay flexible, and prepare for different outcomes. Despite the uncertainty, we need to keep doing what we do best – developing and delivering life-saving medicines. It’s a challenging time, but together, we can find ways to adapt and thrive.
