A Vulnerable Line of Defence: Why Canada Can’t Afford to Lose Its Pharmaceutical Manufacturing Sector
- CPMEA
- Aug 6
- 2 min read
August 6, 2025, Toronto - The growing threats facing Canada’s pharmaceutical manufacturing sector aren’t just economic - they’re national security concerns. From escalating trade tensions to an over-reliance on global supply chains, the ability to make medicines in Canada is under real and immediate threat. And if we lose that capacity, the consequences could be dire.
Lessons from Recent Supply Chain Failures
During the COVID-19 pandemic, Canadians faced shortages of basic medications like painkillers, antibiotics, and children’s fever reducers. These weren’t luxury items - they were essential treatments, and we couldn’t get them because we were too dependent on foreign suppliers. Production bottlenecks in other countries left our shelves bare. And now, we’re at risk of repeating history.
Escalating Trade Pressures Demand Urgent Attention
The recent threat of a 200% U.S. tariff on Canadian pharmaceuticals¹ is only the latest signal that Canada must do more to protect and expand domestic production. Steel, aluminum, and auto manufacturing have already been targeted by U.S. Section 232 tariffs in the name of national security. Pharmaceuticals could be next. If Canada loses access to key export markets or becomes subject to new trade barriers, our manufacturers may not remain economically viable.
Security Means Self-Sufficiency
Medicines are a foundational part of a functioning healthcare system and of national readiness. Whether the next crisis is a pandemic, a climate disaster, or geopolitical conflict, Canada must be able to produce and distribute the drugs we need within our own borders. That includes critical medicines for chronic conditions, pain management, emergency care, and more.
Pharmaceutical manufacturing is not just an economic asset - it is a pillar of public health resilience.
Policy Support Is Essential to Preserve the Sector
Canada’s pharmaceutical manufacturers are already facing rising costs, global competition, and policy uncertainty. Without strategic support - including stable procurement frameworks, infrastructure investment, and a commitment to domestic resilience - companies will be forced to scale back or shutter operations entirely. When that happens, it’s not just jobs that disappear - it’s our safety net.
Time for Coordinated Government Action
The Canadian Pharmaceutical Manufacturers and Exporters Alliance (CPMEA) is calling on government leaders and policymakers to treat pharmaceutical production as a national health and security priority. We must create the conditions for growth and act decisively before it’s too late.
Because if Canada can’t make its own medicine, we can’t truly protect our people.
The Canadian Pharmaceutical Manufacturers and Exporters Alliance (CPMEA) – Alliance fabricants et exportateurs pharmaceutiques du Canada (AFEPC) represents pharmaceutical companies that manufacture in Canada. We have come together in an Alliance to tell the story of drug production in Canada and to raise awareness of the unique issues facing our industry.
Click here to contact us, or email us directly at info@cpmea.ca.