RILA warns against broad tariffs on semiconductors and pharmaceuticals; association predicts increased consumer costs and drug shortages for Americans if implemented

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• Washington, DC

"Broad-based tariffs on pharmaceuticals and pharmaceutical ingredients will result in drug shortages and increased prices."

Washington, D.C. — The Retail Industry Leaders Association (RILA) submitted comments to the Department of Commerce regarding two separate Section 232 investigations conducted about semiconductor and pharmaceutical imports.

“Imposing broad-based tariffs on pharmaceuticals and pharmaceutical ingredients will result in drug shortages and increased prices for Americans without delivering the kind of increased capacity the administration seeks,” Blake Harden, RILA’s vice president, international trade, wrote regarding the investigation of pharmaceutical imports.

Regarding semiconductors, RILA urged a targeted and phased approach to any resulting tariffs. Not all semiconductors imported to the United States present equal national security risks. Broad based tariff actions on semiconductors used in consumer electronics could increase costs for American consumers.

Harden wrote:“We urge the Commerce Department to take a targeted and phased approach to any measures, including tariffs, that may be imposed through this investigation to ensure that household goods continue to be available and affordable for American families.

“We acknowledge the need for more diverse supply chains to reduce overreliance on China for legacy semiconductors, but imposing broad-based tariffs as an outgrowth of this investigation could have significant impacts on the affordability and availability of household products widely used by American families. This includes products such as home appliances, mobile phones, laptops, gaming consoles, and toys.”

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Regarding pharmaceuticals, RILA warned that broad-based tariffs could lead to higher drug prices, drug shortages, and reduced access for American patients — particularly for generics and essential medications like antibiotics. Instead of sweeping tariffs, RILA urged Commerce to consider other methods to boost the domestic market, including financial incentives, regulatory flexibility and support for innovation to foster domestic manufacturing.

Harden wrote:“To build capacity in domestic production, investment is essential and requires considerable time, significant resources, regulatory and policy flexibility, and financial incentives which doesn’t exist today. Imposing broad-based tariffs on pharmaceuticals and pharmaceutical ingredients will result in drug shortages and increased prices for Americans without delivering the kind of increased capacity the administration seeks. 
 
“We strongly support efforts to promote national security, but it should not come at the potential cost of Americans’ lives and health. The administration can incentivize additional manufacturing of pharmaceuticals and pharmaceutical ingredients through other measures.” 

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RILA is the U.S. trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate.

RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $2.7 trillion in annual sales, millions of American jobs, and hundreds of thousands of stores, manufacturing facilities, and distribution centers domestically and abroad.