July 25,2025
RED FM News Desk
The possibility of steep tariffs is once again on the horizon, with U.S. President Donald Trump considering imposing tariffs of up to 200% on all pharmaceutical drugs entering the United States — including those from Canada — starting August 1.
Jim Keon, president of the Canadian Generic Pharmaceutical Association, says Trump has floated this idea multiple times over the past six months. Although Canada makes up only about 5% of pharmaceutical imports into the U.S., Keon warns that the proposed tariffs could lead to higher drug prices and potential shortages in Canada. “This would drive up healthcare costs in Canada,” Keon said. “We already know that healthcare budgets are tight, and we certainly don’t want B.C. PharmaCare or similar programs to pay more for generic drugs.”
He also noted that such tariffs could make it harder for some Canadian pharmaceutical companies to maintain production, possibly forcing them to discontinue certain medications. Keon argued that Canadian companies are reliable partners and not a threat to U.S. drug supply. “If the concern is about supply chain security, including Canada as a trusted source in the pharmaceutical supply chain makes sense,” he said.
If these tariffs take effect on August 1, uncertainty around access to the U.S. market could deter companies from investing in Canada.
Keon stressed that Canadian pharmaceutical companies have consistently pushed back against these kinds of tariffs to help avoid higher healthcare costs at home.
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