Proposed tariffs in America on imported medications are cause for worry in Bermuda, the head of the Bermuda Health Council has said.

BHC chief executive Ricky Brathwaite told The Royal Gazette: “While it is too early to quantify the exact cost increase, the potential for price inflation, especially for generic [non-brand] medications, is a legitimate concern for Bermuda’s health system and consumers.”

Dr Brathwaite was responding to US President Donald Trump’s plan to tax imported pharmaceuticals to force drug companies to increase drug manufacturing in America.

Eighty per cent of American medications are made in China.

The BHC executive said tariffs placed on medications going to the US could raise prices and indirectly affect Bermuda due to the island’s reliance on US-based suppliers and distribution chains.

Reuters has reported that the tariffs were unlikely to mean higher prices for brand-name medications but could threaten access to less expensive generic drugs with thin profit margins.

According to Reuters, nearly $213 billion in pharmaceuticals were imported to America last year.

Dr Brathwaite said Bermuda’s legislation allowed for the importation and sale of medications that had been approved by established regulatory bodies, such as the US Food and Drug Administration.

“These agencies are internationally respected for their robust review of pharmaceutical safety, efficacy and quality,” he said. “Our alignment with their standards helps safeguard the products used by our population. It also provides Bermuda with flexibility to source from multiple jurisdictions based on cost-effectiveness and availability.”

However, Bermuda is not bound to source medications from the US.

“We have the regulatory and technical tools to adapt as global conditions change and, as echoed by other stakeholders, our local market has the capacity and readiness to adjust procurement strategies as needed,” Dr Brathwaite said.

He said to mitigate risks like this one, Bermuda actively engaged in technical collaboration with the Pan American Health Organisation, including participation in discussions around the PAHO Strategic Fund.

“This is a pooled procurement mechanism that many Caribbean nations use to achieve cost savings through collective volume,” he said. “Bermuda has successfully used the Strategic Fund in the past, achieving over 90 per cent savings on HIV medications and benefiting from PAHO’s support in acquiring vaccines and other critical public-health supplies.

“For small jurisdictions like ours, regional partnerships are essential to maintaining affordability, resilience and continuity of care.”

Private pharmacies or local distributors usually procure Bermuda’s medications but the BHS has a legislated role related to procurement negotiation, particularly when it comes to securing more cost-effective pricing, Dr Brathwaite said.

He added that the tariff situation underscored the importance of proactive, evidence-based planning.

“Global trade decisions made far beyond our shores can affect our local ability to access and afford medications,” he said. “Strengthening our partnerships, optimising our procurement strategies and remaining flexible will be key to ensuring that Bermuda’s population has continued access to the treatments they need.”

Dr Brathwaite said that Government had recently taken steps to improve drug affordability, including the establishment of a drug benefit under the Health Insurance Plan and an expansion of the drug benefit for FutureCare from $1,000 to $3,000 per policy year.

“These changes help reduce the financial burden on individuals with chronic or high-cost conditions,” he said.