From Top Electric.

In July 2025, President Donald Trump’s announcement of a 200% tariff on insulin and critical pharmaceuticals, unless manufacturing returns to U.S. soil within 18 months, has ignited a global crisis. Framed as a national security necessity, the policy demands a reshoring of drug production, threatening allies with severe import duties. Ontario hospitals have halted new drug orders, Australia’s Treasurer Jim Chalmers vowed to protect the Pharmaceutical Benefits Scheme, and Canada is quietly lobbying for humanitarian exemptions while preparing for supply chain disruptions. Japan and South Korea face a 25% tariff on all imports starting August 1, causing market turmoil, with Nissan dropping 5% and the Dow losing nearly 1%. Over 90% of U.S. pharmaceutical ingredients come from China and India, and domestic capacity cannot yet fill the gap. A 5% supply reduction could empty pharmacy shelves, as generics dominate U.S. prescriptions. Allies like Canada, led by strategist Mark Carney, are fortifying biotech sectors, while Singapore and India pivot to alternative markets. The policy risks fracturing alliances, strengthening China, and triggering shortages. As the July 21 deadline looms, the U.S. must choose between hammering allies or backing down, both politically costly. Medicine, once a shared innovation, is now a geopolitical weapon, with trust replaced by tariffs. Global Pulse tracks this unfolding saga, where the next drug shortage may stem from policy, not disaster.

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