President Donald Trump's announcement of new tariffs on the pharmaceutical industry has sparked a wave of panic among companies in the United States (US), with pharmacy shelves reportedly full.
Many businesses are seen rushing to import and stockpile drugs ahead of time, fearing prices will soar once the tariffs go into effect.
The move is seen as an effort to avoid additional costs when the tariffs take full effect.
As a result, US imports hit a record high of $419 billion in March, with pharmaceutical products from Ireland accounting for the bulk of the surge.
Imports of medicines alone rose by $20.9 billion, accounting for almost the entire increase in the consumer goods category.
However, the effects of this hasty action are starting to be felt.
The US trade deficit jumped to $140.5 billion, double the figure from a year ago. At the same time, Gross Domestic Product (GDP) growth has also been affected, with a 0.3% contraction recorded in the first quarter of this year.
Analysts warn that today’s high stockpiles could lead to shortages in the coming months, as well as higher consumer prices, as tariffs begin to affect the global supply chain as a whole.
Medicines may still be plentiful today — but future doses could be more expensive.
