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Advocacy & Education

Q&A: The Latest on Tariffs &
Canadian Pharmaceuticals

The team at CPPI is paying close attention to the developments related to potential tariffs on products from Canada sold in the U.S., which may include pharmaceuticals for personal use. Following are details to keep you informed:

 

Q: What are tariffs?

A: Tariffs are a tax on goods and services imported from one country to another. They are frequently used in international trade by governments to raise revenue, exert political pressure, or protect their competitive advantages. They are typically passed on to the consumer.

 

Q: Will these taxes affect your ability to fill your prescriptions with licensed online Canadian pharmacies? 

A: No. What hasn’t changed: Canada remains a safe, trustworthy partner to fill your pharmaceutical needs.The good news is that the same safe and familiar ordering systems, shipping, and billing methods that millions of consumers have used over the past 20 years to buy their prescriptions from Canada are still in place. Regardless of the outcome of taxation policies, Canada’s online pharmacies will remain a strong option for buying your medicines.

 

Q: Have Canadian prescription drugs had these taxes placed on them yet?

A: Drugs ordered from online Canadian pharmacies have not had additional taxes placed on them. Statements on what might happen have changed frequently and may continue to be unpredictable. The taxes on Canadian products were first announced to take effect in February 2025, but there have been multiple extensions and discussions of what products will be taxed, and at what rates.

Q: What are the next steps on the tariffs situation?

A: If taxes do increase, your prescriptions will still likely be less expensive when ordered from Canada.Your important, needed prescriptions are very likely to be less costly than U.S. prices – even with added taxes – if ordered from licensed Canadian pharmacies. Consumers should check with their Canadian pharmacy if there are cost-saving alternatives. You can find a list of licensed Canadian pharmacies here.

 

Q: Will the cost of U.S. drugs increase, too?

A: If taxes on Canadian pharmaceuticals increase, expect the cost of U.S. medicine to climb, too. U.S. drug manufacturers that buy raw materials from foreign countries also face the prospect of new taxes on these products, as well as drugs manufactured abroad – as many U.S. pharmaceuticals are. In fact, according to Congressional testimony, the U.S. is heavily dependent on foreign manufacturers for its pharmaceuticals - with at least 45% of finished drugs coming from abroad. This will likely increase drug prices in the U.S., on top of the 2025 price hikes already enacted on U.S. pharmaceuticals.

 

CPPI continues to monitor the situation, and will inform you when there are concrete plans in place. 

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