Canadian pharmaceutical industry alarmed after Trump floats 200 per cent tariff

U.S. President Donald Trump speaks during a lunch with African leaders in the State Dining Room of the White House on Wednesday, July 9, 2025, in Washington. (AP Photo/Evan Vucci)

WASHINGTON — An pharmaceutical industry representative says Canada likely isn’t the main target of U.S. President Donald Trump’s threat to impose a 200 per cent tariff on pharmaceutical imports — but his plan could still put parts of the Canadian sector in peril.

Canadian Generic Pharmaceutical Association president Jim Keon says there’s a risk that Canada will get caught in the crossfire as Trump pushes to reduce Americans’ reliance on drugs imported from places like China and India.

On Tuesday, Trump floated the idea of massive pharmaceutical tariffs but said he would give drug makers up to a year and a half before introducing the duties.

Keon says Canadian exports amount to less than five per cent of all generic medicines sold in the U.S.

But without access to the American market, he says, it might not be practical for some companies in Canada to continue producing certain generic medicines for the domestic market.

Keon says there is hope that the economic and security agreement being negotiated between Canada and the United States will ensure pharmaceuticals remain tariff-free.

This report by The Canadian Press was first published July 9, 2025.

Kelly Geraldine Malone, The Canadian Press