Drug and Druggists' Sundries Wholesalers NAICS 424210

Jan 5, 2026 - Trump Administration Considers Tariff Options

• The US Supreme Court is hearing arguments on whether tariffs imposed by the Trump administration are legal. Drug and druggists' sundries wholesalers are likely to benefit if the cost of goods imported from countries that were hit with tariffs decreases. The US Court of Appeals for the Federal Circuit ruled earlier that President Trump overstepped his authority when he declared national emergencies to justify tariffs on many countries. The Trump administration can use other laws to impose duties on goods from other countries if the tariffs are ruled illegal. The administration will most likely rely on Section 301 of the Trade Act of 1974 and Section 232 of the 1962 Trade Expansion Act to recreate Trump's tariffs, experts told Business Insider. Section 301 allows the US to place tariffs on goods from countries if they "either violated international trade law or otherwise acted unfairly," according to Rachel Brewster, a professor of international trade at Duke Law School. The law includes provisions that allow the president to form trade deals with other countries to resolve the unfair trade practices, so the deals Trump already struck could likely be "folded into" Section 301, Brewster said. Section 232 allows the president to impose tariffs on goods determined to be a national security threat. Trump has already applied it to goods ranging from aluminum to bathroom vanities, according to Business Insider.
• 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 seven months of 2025, according to the US Bureau of Labor Statistics (BLS). Drug and druggist’s sundries wholesalers slightly decreased their prices during the first eight months of 2025, according to the BLS.