Drug imports plummeted in April despite tariff threat

Manufacturers appeared to stop rapidly stockpiling drugs and medical products from Europe in April, even amid the lingering threat of industry-specific tariffs from the Trump administration, according to federal trade data.
Why it matters: An importing surge seen early this spring may have created an inventory bubble, putting pressure on the companies to sell their products before they expire, experts said.
It's also likely that a temporary pause in contemplated tariffs may have brought drug imports back to earth, they say.
Storage space for drugs and other products may also be maxed out, or it's possible that manufacturing in some hubs can't keep up with the increased demand, one industry observer told Axios.
State of play: Imports of goods to the U.S. decreased $68.9 billion to $277.9 billion in April, the Commerce Department's Bureau of Economic Analysis and the Census Bureau reported on Thursday.
Pharmaceutical imports had jumped to $50.2 billion in March from $29.5 billion in February.
But the situation was reversed in April, as those imports dropped to $24.2 billion.
Ireland, a hub for pharma giants like Pfizer and Johnson & Johnson, also reported Thursday it saw its economy grow three times as fast as expected in the first three months of the year as companies stockpiled drugs, the Wall Street Journal reported.
However, imports from Ireland fell $19.9 billion to $10.9 billion in April after reaching record highs in March.
What's next: The administration continues a Section 232 investigation that could end with a recommendation to put a certain tariff rate on drug imports.

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