US President Donald Trump’s new tariffs on imported branded pharmaceutical products are unlikely to significantly impact major Chinese drug makers, according to analysts. The 100% tariff would exempt firms with US manufacturing plants. The duties, effective October 1, also target kitchen cabinets and heavy duty trucks.

Chinese biotech firms have limited exposure to US drug sales and are shielded from tariffs. These firms, mainly pre-commercialization developers, have partnerships with US companies and earn revenue through royalties. The tariffs would be manageable for Chinese pharmaceutical contract service providers, with higher costs absorbed by multinational customers.

Hangzhou-based Yifan Pharmaceuticals and Zhejiang Huahai Pharmaceutical are evaluating the impact of Trump’s tariffs on their products. Yifan’s drug Ryzneuta production involves the US and Germany. The proposed tariffs are part of broader geopolitical threats facing China’s healthcare industry, including restrictions on licensing deals with Chinese biotech companies.

The Trump administration is considering limiting licensing deals with Chinese biotech firms, following attempts to restrict businesses with China. The Biosecure Act aimed to block Chinese biotech firms from US contracts, but failed to pass into law. Geopolitical tensions continue to affect China’s healthcare industry, as Trump imposes new tariffs.

Read more at Yahoo Finance: Trump’s tariffs on imported drugs ‘not a big concern’ for China’s pharma firms: Jefferies