The news: US pharma imports returned to normal in April after a March stockpiling of drugs and medical products spurred by tariff threats from the Trump administration, per Axios.

• Pharmaceutical imports doubled in March, soaring to more than $50 billion, but dropped back to $24 billion in April, per the Bureau of Economic Analysis. Pharma imports to the US were $29 billion in February and $28 billion in January.
• The dropoff is due to a combination of now-sufficient stock and some industry confidence that financial hits from the Trump administration’s drug pricing proposed changes and tariff threats may be manageable.

Driving the news: President Trump is threatening pharma industry tariffs of 25%, but so far hasn’t imposed any. The administration granted pharmaceuticals a 90-day exemption from the broad 10% on most imports in April, while it undertook a national security trade investigation called Section 232. 

However, the looming possibility of hiked tariffs is driving pharma companies, distributors, and even pharmacists to stockpile lower-priced drugs.

• Ireland’s economy grew three times its typical rate in Q1 thanks to the drug and other product stockpiling, according to the Wall Street Journal. 
• Ireland exported $21.6 billion in pharma products to the US in March, an increase of more than 800% YoY. Many pharma manufacturers including AbbVie, Eli Lilly and Pfizer (which produce Botox, Zepbound, and Viagra, respectively, in Ireland) have operations in the tax-friendly country.
• US independent pharmacists are among the players stockpiling prescription drugs in anticipation of the Trump tariffs, per a May report by NPR and KFF.

The takeaway: Fluctuating tariff threats from the Trump administration and no timeline for when the Commerce Department’s Section 232 investigation recommendation will drop means ongoing uncertainty for drugmakers. If the indecision lags for more than a few months—Commerce department rules allow 270 days from the start to prepare a report for the president—expect some pharma product stockpiling to return.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Not a subscriber? Click here to get a demo of our full platform and coverage.