For decades, the United States has stood at the forefront of the global life sciences industry. America leads the world in biopharmaceutical manufacturing, accounting for 28.4% of global medicine production. This leadership not only strengthens our national economy but ensures American Patients have early access to new medicines. Between 2018 and 2019, 77% of newly developed drugs were available in the U.S. by the end of 2022 ― compared with 64% in Germany, 51% in the United Kingdom and 43% in Japan.
This early access allows American Patients to receive the world’s most effective and innovative treatments sooner ― slowing disease progression, reducing complications, improving quality of life, and easing strain on the healthcare system.
New Jersey: Driving the Nation’s Life Sciences Success
Here in New Jersey, we’re proud to play a central role in this national achievement. From established biopharmaceutical manufacturers to emerging biotech firms, the Garden State drives American life sciences innovation. The life sciences industry is vital to New Jersey’s economy, with more than 5,600 establishments employing 115,000 people and producing over $120 billion in economic output.
Collaboration Keeps Us Competitive
While New Jersey’s contributions help sustain U.S. leadership in the biopharmaceutical sector, maintaining this position requires cooperation beyond both state and national borders. The biopharmaceutical industry depends on international trade ― with global supply chains critical in producing both brand-name and generic drugs. This interconnected system enables American companies to access essential components while focusing on their core strengths ― researching, developing and delivering breakthrough treatments and cures.
A key component of this system is Active Pharmaceutical Ingredients (APIs) ― the compounds that make medicines work. As of 2019, only 28% of API manufacturers were based in the U.S. Importing APIs allows American manufacturers to produce drugs more efficiently and cost-effectively, increasing access for Patients and enabling reinvestment into cutting-edge R&D ― an area where the U.S. continues to lead with 34% of global funding.
Global collaboration also helps the U.S. stay competitive against nations like China, whose share of global pharmaceutical production has risen from 3% in 1995 to 17.4% in 2020. In fact, China outpaced the U.S. in clinical trials for the first time in 2024. At this critical juncture for America’s biopharmaceutical industry, adding barriers to trade with allies risks making it easier for China to close the gap.
While vital priorities, bringing back biopharmaceutical R&D to the U.S. or our country’s allies takes time. Restructuring those trade relationships that are heavily based in China today will take careful consideration. We cannot risk blunt instrument policies such as tariffs, which have been billed recently as incentives for domestic manufacturing, to stunt progress that has been made to build and maintain U.S. life sciences leadership.
Tariffs Threaten Progress and Patient Access
In recent months, biopharmaceutical tariffs have become a frequent topic among U.S. policymakers. These measures would not only weaken America’s leadership in life sciences but would also have devastating consequences for Patients. Studies show that a 25% tariff on biopharmaceutical imports could increase U.S. drug costs by up to $50.8 billion per year. With some proposals as high as 100%, the economic and healthcare impact would be staggering.
Tariffs would compromise access to APIs, slow the delivery of life-saving medicines, and raise costs for Americans at the pharmacy counter ― leaving Patients to bear the burden.
Moreover, as the Trump Administration called on 17 major pharmaceutical manufacturers to commit to steps that would lower U.S. drug prices, a larger number of companies – including smaller, next-generation innovators – would be caught up in the ripple effects of these policies. Without the ability to manufacture at scale as larger companies might be able to, the ability of these innovators to bring breakthrough treatments and cures to market is under threat.
A Smarter Path Forward
If policymakers want to keep the U.S. at the center of the global biopharmaceutical industry, they should encourage domestic growth in areas where American companies excel ― like R&D and end-stage production ― without sacrificing beneficial trade relationships.
The good news? Biopharmaceutical companies are already investing in the U.S., announcing $350 billion in projects in just the first eight months of 2025.
This is a critical moment for the American life sciences industry. By supporting policies that promote domestic manufacturing and protect global trade, lawmakers can sustain U.S. leadership, strengthen competitiveness against China, and ensure Patients continue to receive life-saving treatments without delay.
Get Engaged; Stay informed
Stay informed and make your voice heard by joining the BioNJ Action Network. BioNJ is the life sciences trade association for New Jersey ― helping our members help Patients.
