Pharmaceutical Industry Braces For Impact Of Tariffs

By Katherine Zehnder
Carolina Journal

RALEIGH – Surging pharmaceutical imports and front-loaded shipments driven by tariff fears are reshaping North Carolina’s trade landscape, as experts and analysts warn that escalating uncertainty in global trade policy is leaving businesses too anxious to plan ahead.

Mike Hubbard, the director of international trade for the Economic Development Partnership of North Carolina (EDPNC), emphasized that people are nervous regarding the tariff and trade situation due to the instability and uncertainty of the trade climate.

“People don’t like the uncertainty,” said Hubbard. “It’s unpredictable; they want to know at least what’s going to happen. Even if the outlook is, you know, a rough economy or a rough situation, you can plan for it. It’s that uncertainty that has people nervous, and they’re afraid to make long-term plans until we know the direction that it’s going. So, it’s kind of a touch and go situation for a lot of companies right now while they try to figure it out.”

Data from the EDPNC shows a significant rise in imports between January and May this year as compared to the same period last year.

“Through May 2025, North Carolina imports have surged by 40%, rising from $33.8 billion to $47.3 billion compared to the same period last year,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “Most of this growth occurred from January to March, as firms front-loaded shipments in anticipation of proposed tariffs. Monthly year-over-year increases were striking: 73% in January, 64% in February, and 70% in March.”

North Carolina is home to several large chemical and pharmaceutical manufacturers, including Albermarle Corporation, BASF, DOW, DuPont, and others. This is consistent with North Carolina’s economy, which is conducive to business. North Carolina was recently named the No. 1 state for business by CNBC, and this is not the first time. North Carolina was also named the No. 1 state for business in 2022 and 2023and runner up in 2021 and 2024.

“Pharmaceuticals accounted for the lion’s share of this increase, with imports jumping 148% from $6.4 billion to $15.8 billion, comprising over 70% of total import growth,” continued Harris. “This spike coincided with news of a proposed 200% tariff on pharmaceutical products. The monthly year-over-year increases were especially dramatic: 431% in January, 255% in February, and 275% in March.”

Hubbard told the Carolina Journal that North Carolina drug manufacturers import the most from Ireland, which has been the largest importer for over a year.

“Three countries, Germany, Ireland, and the Netherlands, drove much of the pharmaceutical growth,” concluded Harris. “All are top global exporters in the sector, and each saw massive growth in early 2025. Imports from Germany rose 149% through May, Ireland 68%, and the Netherlands 157%, with individual months showing even more extreme jumps, such as 796% year-over-year growth from the Netherlands in March.”

Additionally, through May, organic chemical imports increased by 25% compared to last year, with a 64% increase year-over-year in January, a 42% increase in February, and the highest increase at 108% in May.

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