[Reporter’s View] Concerns over US drug tariffs

Domestic companies left to fend for themselves

The US President Donald Trump has hinted at the possibility of imposing tariffs on drugs imported into the country.

 

Although he says he is still “reviewing” the matter, it would not be surprising if he signs a tariff declaration at any time.

 

The United States has played a major role in the recent development of the Korean pharmaceutical and biopharmaceutical industries.

 

Korean pharmaceutical and biopharmaceutical companies have steadily expanded their exports to the world's largest pharmaceutical market.

 

Just a decade ago, the export value of domestically produced pharmaceuticals to the United States was only USD 33 million, but last year it increased more than 40-fold to USD 1.359 billion.

 

The U.S.

 

accounted for 18% of Korea's total pharmaceutical exports last year, the largest share of any country.

 

The U.S.

 

has now developed into an inseparable relationship with Korea's pharmaceutical and bio industries.

 

In this situation, if tariffs are imposed on domestically produced drugs exported to the United States, it is expected that a considerable blow will be inevitable.

 

For the time being, it is expected that there will be no major damage in the process of exporting existing orders, but if the situation is prolonged, the accumulated damage is expected to have a negative impact on pharmaceutical and biopharmaceutical companies.

 

The unfortunate thing is that there is no government control tower to respond to the reality of the US tariff bomb.

 

Since the state of emergency at the end of last year, there has been a long-term leadership vacuum.

 

Sang-mok Choi, the acting president, has been filling the void, but it is clear that he has limitations as an acting president.

 

It is difficult to expect measures such as a breakthrough through a summit with an acting president.

 

If drug tariffs are imposed, we will have no choice but to suffer helplessly.

 

Each pharmaceutical and biopharmaceutical company must fend for itself.

 

With the absence of government leadership, the options for each company are limited.

 

They can only set up production facilities in the US or find new markets.

 

Even this is not a solution that can be solved immediately.

 

Small and medium-sized pharmaceutical companies with insufficient financial resources are expected to face even greater difficulties.

 

It is not just the pharmaceutical tariff.

 

From the perspective of the pharmaceutical industry, there are many issues that the government needs to resolve.

 

The conflict between the medical and pharmaceutical industries is a prime example.

 

The conflict over the increase in the number of medical school admissions has continued for years.

 

Its damage to the pharmaceutical industry is gradually accumulating.

 

With the government lacking leadership, there is no sign of a solution.

 

The shadow of crisis is looming over the pharmaceutical and bio-industry due to concerns over Trump’s imposition of tariffs on pharmaceutical products and the prolonged medical-political conflict.

 

However, the bigger crisis is the current reality where pharmaceutical and bio companies are forced to fend for themselves due to the lack of government leadership.