In May 2025, U.S. President Donald Trump announced his intention to impose tariffs on imported pharmaceuticals, signaling potential disruption in the global drug supply chain. Korean pharmaceutical and biotech companies, which export significantly to the U.S., are now closely monitoring the situation and preparing contingency plans.
Trump Administration to Impose Drug Tariffs
On May 5 (local time), President Trump signed an executive order at the White House aimed at boosting domestic pharmaceutical manufacturing. He declared that drug import tariffs would be announced within two weeks and added, “Other countries have treated us unfairly when it comes to drug pricing.”
While detailed information about tariff rates and implementation schedules remains unclear, Reuters reported that, if implemented, the policy could severely impact the pharmaceutical sector, as the U.S. imports over $200 billion worth of prescription drugs annually.
Which Korean Companies Are at Risk?
1. Samsung Biologics
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A leading CDMO (Contract Development and Manufacturing Organization)
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U.S. accounts for 25.8% of total sales
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Manufactures for 17 of the world’s top 20 pharmaceutical companies
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Continues to expand domestic production facilities in Songdo, South Korea
Experts note that Samsung Biologics may face limited direct impact since it focuses on drug substance manufacturing. According to analysts, even if raw materials face tariffs, their cost accounts for less than 10% of final drug prices, minimizing pressure on clients and profit margins.
2. Celltrion
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Exports biosimilar drugs such as Remsima and Zymfentra to the U.S. and Europe
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Pre-secured 9 months of inventory for U.S. operations
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Long-term strategy: increase exports of drug substances and partner with local manufacturers
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Plans to finalize U.S. production facility investment decisions by mid-2025
Celltrion is taking a proactive approach, having secured local inventory and preparing to diversify supply chains by increasing collaboration with U.S. partners.
Current Pharmaceutical Trade with the U.S.
According to the Korea Biotechnology Industry Organization, in 2024, South Korea exported approximately $3.98 billion (₩5.53 trillion) worth of pharmaceuticals to the United States. Given the high dependency on the U.S. market, Trump’s proposed drug tariffs pose a significant risk to Korean pharmaceutical exports.
Conclusion: Agility Will Define Future Competitiveness
While Trump’s tariff policy has yet to be finalized, the mere possibility is prompting swift action across the industry. Key players like Samsung Biologics and Celltrion are exploring ways to buffer potential impacts through inventory management, production localization, and diversified partnerships.
As more details emerge in the coming weeks, Korean pharma companies must stay agile and strategic to preserve their competitiveness in the global market. Stay tuned to this blog for the latest developments on this unfolding issue.
