Tariff impact inevitable for biodrugs’ export to the US

US biopharmaceutical exports amount to KRW 850 billion last year

2024 biopharmaceutical exports to the US up 103% year-on-year... North America's share rises from 14.7% to 19.4%

Trump administration threatens tariffs of up to 250% on pharmaceutical products, domestic companies scramble to respond

Exports of domestically produced biopharmaceuticals to the US more than doubled last year compared to the previous year.

 

If the Trump administration's tariffs on pharmaceuticals are implemented, the domestic biopharmaceutical export industry is expected to suffer significant damage.

 

According to the “Key Data on the Domestic Biopharmaceutical Industry 2025” published by the Korea Biomedicine Industry Association (KoBIA, President: Jeong-seok Lee) on the 11th, last year's exports of domestically produced biopharmaceuticals to the United States reached USD 686.7 million (approximately KRW 845.9 billion).

 

This represents a 103% increase from the previous year's USD 300.72 million (approximately KRW 417.8 billion).

 

Last year, the export value of domestically produced biopharmaceuticals to the U.S.

 

grew to nearly match the import value.

 

Last year, the U.S.

 

imported 694.7 million dollars worth of biopharmaceuticals, a 7% increase from the previous year.

 

The share of North America in the total exports of domestically produced biopharmaceuticals also expanded significantly over the past year.

 

By continent, the North American region's share increased by 5 percentage points, from 14.7% in 2023 to 19.4% last year.

 

The US ranked second in biopharmaceutical exports, following Hungary.

 

Hungary's biopharmaceutical exports totaled USD 1.23346 billion, followed by Turkey (USD 432.06 million) and Brazil (USD 144.04 million).

 

The analysis is that exports of biopharmaceuticals to the United States have been increasing in line with the growth of the domestic biosimilar industry.

 

Biosimilars developed by domestic companies such as Celltrion and Samsung Bioepis are rapidly expanding their market share in the United States.

 

Celltrion received four biosimilar approvals in the US this year alone, while Samsung Bioepis launched “Pyzchiva,” a biosimilar version of the autoimmune disease treatment “Stelara,” and ‘Epysqli,” a biosimilar version of the rare disease treatment “Soliris” in the US market this year.

 

(Source:KoBIA) Top 10 biopharmaceutical export/import nations

With exports of biopharmaceuticals to the U.S.

 

on the rise, domestic companies are closely monitoring the Trump administration's tariff imposition.

 

As the U.S.

 

is a major export destination for Korean biopharmaceuticals, there are concerns that the imposition of tariffs will inevitably deal a blow to the domestic biopharmaceutical export industry.

 

U.S.

 

President Donald Trump recently announced plans to raise tariffs on certain pharmaceutical products by up to 250%.

 

President Trump stated, “We will impose tariffs on certain pharmaceutical products soon, raise the tariff rate to 150% after one year, and then to 250% thereafter.” As the U.S.

 

is set to announce the results of its Section 232 investigation under the Trade Expansion Act of 1962, the industry believes that the imposition of tariffs on pharmaceutical products is highly likely.

 

Section 232 of the Trade Expansion Act allows the Department of Commerce to investigate the impact of imported goods on national security and enables the president to take appropriate measures.

 

The US government launched an investigation into this matter in April.

 

In line with this policy direction, domestic and foreign pharmaceutical and biotechnology companies have been accelerating their production investments in the US.

 

AstraZeneca and Roche have each announced investments of USD 50 billion, Johnson & Johnson USD 55 billion, Eli Lilly USD 27 billion, Novartis USD 23 billion, and Sanofi at least USD 20 billion to expand their manufacturing capabilities in the US.

 

Domestic companies such as Celltrion are also rushing to enter the U.S.

 

market and secure production bases.

 

Celltrion is reportedly in talks to acquire Eli Lilly's monoclonal antibody production plant in Branchburg, New Jersey.

 

Earlier, Jung Jin Seo, chairman of Celltrion Group, stated that the company is pursuing the acquisition of a U.S.

 

active pharmaceutical ingredient (API) plant to reduce uncertainties related to U.S.

 

tariff risks.