The Senate passed a budget resolution to create a blueprint for a future reconciliation package. The upper chamber voted 51 to 48 on Saturday to pass a budget resolution that would create a framework to raise the debt limit, make permanent the tax cuts passed in 2017, and implement a minimum of $4 billion in budget cuts (much lower than the $2 trillion in cuts included in the House’s earlier plan). The resolution preserves the House’s directive that the Energy and Commerce Committee, which oversees Medicare and Medicaid, find $880 billion in spending cuts. (The Washington Post and The Hill)
House adopts the Senate’s new budget resolution. The House on Thursday morning approved the Senate’s budget resolution in a largely party-line 216 to 214 vote, with two Republicans voting against the measure. With the budget resolution adopted in both chambers, Congress can now focus on specific language for the reconciliation package outlined in the resolution. (NPR)
President Trump implements a 90 day pause on his tariff plan. The president implemented a base 10% global tariff on almost all trade goods that went into place on April 5, with additional higher tariffs planned to go into place on April 9 for many countries. Instead, on April 9 the president reversed course and paused the implementation of the increased tariff rates for 90 days for most countries except China. For China, President Trump increased tariffs on the country to 125%. (Read The Associated Press and Axios)
Provider trade groups send letter concerning the impacts of tariffs on healthcare costs. Multiple trade groups including AdvaMed, Association of American Medical Colleges (AAMC), and America’s Essential Hospitals wrote U.S. Trade Representative Jameison Greer to highlight their concerns about how tariffs on medical and dental equipment could create significant supply chain challenges and raise costs, and to ask that these products be exempt from tariffs. (Read Medtech Dive)
President Trump forewarns that additional tariffs specific to the pharmaceutical industry are near. Though pharmaceuticals were exempted from previously announced tariffs, President Trump pledged on April 8 that the administration will be “be announcing very shortly a major tariff on pharmaceuticals.” (Read The Washington Post) 90% of US prescriptions fall under the category of generics or biosimilars. Major tariffs would be costly to US drug companies as 80% of generic drugs are finished outside of the US and more get their active ingredients from other countries. (Read Axios)
Where do consumers stand on tariffs?
A webinar hosted by Morning Consult revealed that US consumers expect pharmaceuticals to be the 5th highest area where tariffs will inflate prices—next to groceries, automobiles/parts, and gasoline. 46% of US consumers broadly oppose potential pharmaceutical tariffs. Many US consumers feel that tariffs will cause companies to push costs onto consumers rather than absorb them.