Drug and Druggists' Sundries Wholesalers NAICS 424210

Mar 3, 2026 - Countries may Choose to Keep Existing Tariff Deals

• President Trump said in his State of the Union Address that almost all countries and corporations want to keep trade deals already completed in order to avoid the higher tariffs enacted via an executive order issued shortly after the US Supreme Court ruled in late February 2026 that President Trump exceeded his authority when imposing tariffs using a law reserved for a national emergency. Drug and druggists' sundries wholesalers are likely to benefit if the cost of goods imported from countries that were hit with tariffs decreases. The executive order implements a new tariff under Section 122 of the 1974 Trade Act. Section 122 allows the president to institute a "temporary import surcharge" of up to 15% if he finds there are "large and serious United States balance of-payments deficits" or to "prevent an imminent and significant depreciation of the [US] dollar in foreign exchange markets." The tariffs can last for up to 150 days, after which Congress may have to take action to extend them, according to NBC News, and the law is also not clear on whether the administration could restart the tariffs immediately after the 150 days with another executive order.
• The three largest US pharmaceutical wholesalers — Cardinal Health, Cencora, and McKesson — are using vertical integration to strengthen their positions in the buy-and-bill market for provider-administered drugs, according to Gene Online. Wholesalers are expanding their influence beyond traditional drug distribution by integrating with downstream customers and acquiring stakes in practice management companies. Private equity roll-ups have played a key roll in providing wholesalers with opportunities to acquire ownership stakes in practice management firms.

• President Trump said during a meeting with pharmaceutical and technology industry executives that companies which move their operations to plants in the US would face no tariffs, according to The Guardian. He also suggested that companies would have the time needed to repatriate some manufacturing with new or expanded operations in the US before they would face a “tariff wall”. President Trump paused his “reciprocal” tariffs for 90 days after they prompted a sell-off of US government bonds in April but he has repeatedly threatened to carry through with sectoral tariffs on the pharmaceutical industry.
• Drug and druggist’s sundries wholesaler industry employment and average wages for nonsupervisory employees increased slightly during the first eight months of 2025, according to the US Bureau of Labor Statistics (BLS). Drug and druggist’s sundries wholesalers slightly increased their prices during the first nine months of 2025, according to the BLS.