Question Period Note: Pharama Tarrifs

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KEY MESSAGES
· The Government of Canada understands the uncertainty and concern many Canadians are feeling as a result of the unjustified tariffs imposed by the US and is committed to using every tool at its disposal to protect Canadians.
· As of May 12, 2025, no targeted US tariffs have been levied against pharmaceutical products or medical devices. However, the Government of Canada is preparing to mitigate the impact of any future tariffs on pharmaceutical products and medical devices on Canadians and the Canadian pharmaceutical sector if the US should decide to impose any.
· Health Canada is working closely with provinces and territories, and continues to engage with the pharmaceutical industry, health associations and patient groups to identify, monitor and respond to concerns to mitigate negative impacts of any tariffs in this sector.
IF PRESSED …
Q1 : If pressed on the impact of the May 5 US Executive Order ‘Regulatory Relief to Promote Domestic Production of Critical Medicines’ or the May 12 Executive Order ‘Delivering Most-Favoured-Nation Prescription Drug Pricing to American Patients’…
A1:
· While these Orders did not impose tariffs on pharmaceuticals or medical devices, the active ingredients in pharmaceutical products, or derivatives of them, the Government of Canada is monitoring how these orders will be implemented.
· Health Canada continues to engage with the US Food and Drugs Administration on matters related to the safety, efficacy and quality of medicines.
Q2 : If pressed on the impact of US tariffs on health product shortages…
A2:
· Health Canada is monitoring the impact of U.S. tariffs on access to health and health-related food products in Canada.
· Health Canada will continue its outreach, leveraging its networks across the health sector to monitor and identify shortage risks and actual shortages, particularly for drugs that could leave patients without options and significantly impact their health.
· Health Canada will not hesitate to take all available actions to ensure adequate supply.
Q3: If pressed on the potential for negative impacts on the Canadian pharmaceutical industry as a result of U.S. tariffs…
A3:
· The Government of Canada continues to engage with the pharmaceutical industry to identify, monitor and respond to concerns to mitigate negative impacts of the existing tariffs and any future tariffs specifically imposed on the pharmaceuticals sector. Health Canada will also work collaboratively with different government departments and with provinces and territories to mitigate impacts on the pharmaceutical industry.
Q4: If pressed on Canadian response to US section 232 national security investigation on pharmaceuticals…
A4:
· The Government is aware of the US section 232 national security investigation on pharmaceuticals and took a concerted effort to respond to the investigation.
· On May 7, Canada submitted its response to the US Department of Commerce’s US Section 232 national security investigation emphasizing that imports from Canada do not in any way threaten to impair US national security. Rather, they contribute to US national security and complement efforts by US domestic industries to reinforce and advance North American pharmaceutical supply chains.

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• Since March 2025, the US has levied a series of general and sector-specific tariffs on global partners, including Canada. As of May 12, 2025, the US has not imposed sector-specific tariffs on Canadian pharmaceuticals or medical devices. The US has launched a national security investigation of imports of pharmaceuticals, which could serve as a precursor to imposing tariffs.
• US President Trump has also issued several Executive Orders, including one specific to pharmaceutical prices. The Government of Canada has not announced either counter-tariffs or non-tariff measures on US pharmaceuticals.
• The pharmaceutical supply chain is complex and is particularly entwined between Canada and the US.
o The US is an important source of pharmaceuticals for Canada, amounting to $6.0B, or roughly 31% of a total of $19.3B of imports.
o The US is also an important export market for Canadian pharmaceuticals of $11.1B, or 77% of a total of $14.5B of exports.
o The pharmaceutical industry in Canada represents $74B in revenue and 81,000 jobs.
o Canada also has a significant medical technology market, worth $7.8B and the 8th largest globally. It is composed of over 1,500 companies, mostly in Ontario, Quebec, and British Columbia. The country exports $3.1B of medical technology, mainly to the US, Europe, Middle East, South America, and China, while importing $8.6B.
• Any tariffs have the potential to trigger supply chain disruptions, shortages, and/or cost increases. Tariffs on pharmaceuticals could adversely affect the health of Canadians, with serious downstream impacts such as increased health risks, added strain on health care systems and greater financial burdens on patients and families.
• US tariffs on steel and aluminum appear to already be affecting manufacturing input costs for pharmaceuticals and medical devices (e.g., cost of vaccine vial caps but exact amounts are hard to quantify). Moreover, anticipated US tariffs on countries producing the active ingredients in pharmaceutical products could also have an impact on Canadian pharmaceuticals imported from the US.