Question Period Note: Pharmaceutical Tariffs

N/A

KEY MESSAGES
• The Government of Canada is committed to using every tool at its disposal to protect Canadians from unjustified tariffs.
• To date, targeted US tariffs have not been levied against pharmaceutical products or medical devices.
• Health Canada is working closely with provinces and territories, and continues to engage with the pharmaceutical industry, health associations and patient groups to help monitor and mitigate negative impacts of any current or future 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 help 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.

N/A

KEY STATS
• 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.

• The US is also an important export market for Canadian pharmaceuticals of $11.1B, or 77% of a total of $14.5B of exports.

• The pharmaceutical industry in Canada represents $74B in revenue and 81,000 jobs.