Ron Lanton explains that increased pharmaceutical tariffs could drive up costs, reduce margins, and strain pharmacy supply chains, with few mitigation options available.
In an interview with Pharmacy Times®, Ron Lanton, partner at Lanton Law, discusses the potential impact of increased tariffs and trade restrictions on the pharmaceutical industry. Lanton warns that such measures would likely raise costs and disrupt product supply, ultimately squeezing pharmacy margins and operational efficiency.
Lanton notes that while lawsuits may be filed, there are limited legal avenues to counteract tariffs, and meaningful relief would require congressional action—something he views as unlikely in the current political climate. To prepare, he advises pharmacies to develop relationships with multiple trusted suppliers to minimize risks from supply chain disruptions.
Pharmacy Times: From your perspective, how might increased tariffs or trade restrictions on active pharmaceutical ingredients or finished drugs affect domestic pharmacy operations and margins?
Ron Lanton: I think it's going to strain product supply for partners and most certainly increase costs. When you have these factors, it creates a recipe for reducing margins and putting pressure on internal operations, especially for pharmacies.
Pharmacy Times: What kind of legal or regulatory levers do pharmaceutical companies and pharmacies have to challenge or mitigate the burdens of tariffs?
Lanton: Unfortunately, I believe there are none. I mean, you can always file a lawsuit about something, but you have to get into the weeds about how to prove your case and what actually happens. Maybe we might see the same arguments that we saw with the Inflation Reduction Act when that first came out of rulemaking in 2020. But ultimately, Congress is the only one that can stop the tariffs by passing a law of any kind. It just doesn't seem as though this current Congress wants to do that right now. There are probably a lot of reasons for that, but I think the pushback—and whether there’s enough public pushback—is going to determine whether they actually put a policy in place. I just don’t see that happening right now.
Pharmacy Times: Do you foresee supply chain disruptions for pharmacies as a result of pressures from tariffs? How could pharmacies best prepare?
Lanton: I foresee a lot of supply chain issues with this. I think the only way I see preparation is to have multiple trusted partners in order with precision.
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