iBIO Statement on Section 232 Pharmaceutical Tariffs

iBIO Statement on Section 232 Pharmaceutical Tariffs

by John Conrad| Apr 3, 2026| Policy News

Statement from John Conrad, President & CEO, iBIO

"In Illinois, we've seen what the right environment can deliver - with recent investments from AbbVie and CSL Behring reinforcing our state's role as a leader in biomanufacturing and innovation. And candidly, we'd like more companies to follow their lead - not fewer. That kind of growth doesn't happen by accident. It depends on stable, predictable policies that encourage companies to invest, scale, and take risks on the next generation of treatments.

That's why we have real concerns with the Administration's Section 232 pharmaceutical tariffs. These measures apply broadly across pharmaceutical products and key ingredients, adding new costs at every stage of development and manufacturing. For an industry already defined by long timelines, high failure rates, and significant capital needs, this is not a small adjustment - it's a structural headwind.

The burden will fall hardest on small and mid-sized biotech companies. These are the companies doing much of the early, high-risk work to develop new therapies, often without the resources or infrastructure to absorb sudden cost increases or reconfigure global supply chains. When capital gets redirected to tariffs instead of science, innovation slows - or stops.

There are also real implications for patients. Many therapies rely on globally sourced inputs, and introducing friction into those supply chains increases the risk of delays, shortages, and higher costs. For patients waiting on new or specialized treatments, that uncertainty matters.

We all share the goal of strengthening domestic manufacturing and securing supply chains. But tariffs alone won't get us there - and in many cases, they may work against it by discouraging investment and introducing instability into an already complex ecosystem.

iBIO looks forward to working with policymakers on solutions that actually accelerate U.S. biomanufacturing, support growth-stage innovators, and ensure patients can access the medicines they need. Getting that balance right is critical to maintaining American leadership in biotechnology."

What's Included - and Why It Matters

The Administration's Section 232 tariff action applies broadly across pharmaceutical products - and importantly, it does not stop at finished medicines.

The policy defines "pharmaceutical articles" to include not only finished drug products, but also active pharmaceutical ingredients (APIs) and key starting materials used to manufacture them .

This means the tariffs extend across the full pharmaceutical supply chain - from early-stage development through manufacturing.

Because many companies, including those manufacturing in the United States, rely on globally sourced inputs, the inclusion of APIs introduces added costs and complexity throughout the development process. Rather than affecting only imported finished products, these tariffs can impact research, clinical development, and production timelines.

For growth-stage biotechnology companies in particular, these added pressures can be significant, as capital is often tightly allocated to advancing innovation. At the same time, increased friction in supply chains raises concerns about potential delays or disruptions that could ultimately affect patient access to critical therapies.

iBIO will continue to monitor how these policies are implemented and their impact on innovation, manufacturing, and patients."