Trump’s Tariff Tsunami: Can Life-Saving Therapies Like ADCs and Oligonucleotides Stay Afloat?

A Brewing Storm for Advanced Medicine

President Donald Trump’s revived tariff agenda in 2025 is making waves far beyond the usual trade headlines; it’s crashing right into the heart of the pharmaceutical industry. And it’s not just any drugs at risk. Innovative therapies like oligonucleotides and antibody-drug conjugates (ADCs), hailed as breakthroughs for cancer and rare diseases, are particularly exposed. Their complex, globally interwoven supply chains are being rattled by tariffs on critical imports, raising urgent questions: will these life-saving treatments sink under the pressure or find a way to stay afloat?

Oligonucleotide Therapies: Cutting-Edge Science Meets Hard-Hitting Economics

Oligonucleotides, including antisense oligonucleotides and small interfering RNAs (siRNAs), are the new heroes of precision medicine. Designed to silence faulty genes or correct rare genetic disorders, these therapies rely on rare, high-tech ingredients, many of which come straight from China. With over 40% of active pharmaceutical ingredients (APIs) imported into the U.S. sourced from China, Trump’s tariffs have triggered a 20–25% spike in raw material costs.

That’s a major blow, especially for lean biotech start-ups already juggling tight budgets. Higher costs mean potential price hikes for patients and could slow the development of these promising new treatments just as they’re starting to make an impact.

ADCs: High-Stakes Treatments Now Facing Higher Costs

Antibody-drug conjugates are another leap forward in modern medicine. By fusing cancer-killing agents with targeted antibodies, ADCs promise powerful results with fewer side effects. But making them is no small feat; it involves complex linkers, specialised payloads, and antibodies, all sourced globally.

Tariffs on imports from pharmaceutical hubs such as China, Canada, and Mexico are putting these elaborate supply chains under strain. The HDA - Healthcare Distribution Alliance warns of possible drug shortages and steeper prices. For therapies already among the most expensive to manufacture, this added cost burden could be a tipping point.
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Pharma's Countermove: Reinventing Supply Chains

Faced with this tariff turmoil, pharmaceutical companies are not sitting still. Roche, the Swiss biopharma powerhouse, is going big - announcing a £40 billion ($50 billion) plan to scale up operations in the U.S. over the next five years. The investment aims to cushion the blow of tariffs, bolster local production, and create over 12,000 new jobs, including state-of-the-art facilities across multiple states.

On the flip side, European firms are sounding the alarm. Giants like Pfizer and AstraZeneca have urged the European Commission to consider the long-term economic risks. Their concern? That tariffs may drive innovation and investment out of Europe and into more economically appealing markets like the U.S.

Looking Ahead: Sink or Swim?

Trump’s trade policies are sending shock waves through pharma, with advanced therapies like oligonucleotides and ADCs caught in the riptide. Rising costs, potential shortages, and pressure on innovation loom large. But there’s still hope. Industry leaders are pushing for policy exemptions for critical medicines and investing in domestic resilience.

Whether these life-saving therapies will weather the storm or be swept off course remains to be seen, but one thing is clear: the global pharmaceutical landscape is undergoing a seismic shift.

*Graph 1:

• Raw Materials for Oligonucleotides: Costs increased from $50,000 to $62,500 per batch, reflecting a 25% rise due to tariffs on imported active pharmaceutical ingredients (APIs).

• ADC Component Assembly: Costs escalated from $200,000 to $260,000 per lot, a 30% increase attributed to tariffs affecting imported components essential for antibody-drug conjugates.

• Clinical Trial (Phase I): Expenses rose from $1.5 million to $1.73 million, marking a 15% increase as tariffs impact the cost of imported medical devices and supplies used in trials.

• Patient Out-of-Pocket Costs (per year): Annual costs surged from $100,000 to $140,000, a 40% increase, as higher production costs are passed down to patients.

Sources:

Grassi Advisors & Accountants. (2024) Understanding the tariff impact on the biotech and pharmaceutical industries.

European Pharmaceutical Review. (2024) How could tariffs impact the pharmaceutical industry?

Cheeks-Cbowe, A. (2025) Tariffs’ impact on clinical trials in 2025, LinkedIn.

Sanofi. (2025) Pricing principles report: The disconnect between list prices and patient costs.

Reuters. (2025) Roche to invest $50 billion in United States over next five years.
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‍Reuters. (2025) Pharma companies expected to absorb any tariff hit in short term.

Pharmaphorum. (2025) Trump tariffs would strain pharma supply chain.
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‍MarketsandMarkets. (2025) Trump tariff impact on oligonucleotide CDMO market.

BioSpectrum Asia. (2025) Trump's trade tango returns: Will China's biotech dance through another round of tariffs or stumble?

The Guardian. (2025) Ministers in ‘active conversation’ with UK drug firms over potential tariffs. ‍