China-US drugs trade will avoid trade war

Subject

Trade in pharmaceuticals and narcotics between China and the United States.

Significance

The flow of drugs between China and the United States -- both legal and illegal -- has a huge impact on each society, especially those going from China to the United States. Leaders in both countries have consciously sought to separate the bilateral trade and trafficking of drugs from their trade war.

Impacts

• Although US pharmaceuticals firms should avoid tariffs on their products, tariffs may affect other areas of their supply chain.
• Other producers of pharmaceutical products, such as India, could benefit from any active US effort to diversify sources.
• If China were successfully to curb fentanyl production, production would probably shift to another country with lighter regulation.