Australian biotechnology firm CSL Ltd has confirmed it is evaluating whether some of its U.S.-made medicines, particularly those used in surgical procedures, are included in China’s selective tariff exemption list. The move comes as part of the company’s strategy to minimize the impact of escalating trade tensions between the United States and China, which have resulted in China imposing tariffs as high as 125% on certain U.S. imports.
Beijing has taken a nuanced approach by quietly granting exemptions on specific products, including select pharmaceuticals. It has also established a non-public exemption list to avoid conflicting with its public stance of standing firm against U.S. tariff policies. This strategy appears designed to quietly cushion the domestic impact of the trade dispute while preserving a tough public image. CSL acknowledged awareness of these exemptions and stated that it is working to determine whether its critical medicines are eligible for inclusion.
CSL, along with Japan’s Takeda Pharmaceutical and Spain’s Grifols, operates U.S.-based facilities that manufacture human albumin, a plasma-derived product widely used in China. Human albumin is a key treatment for various medical conditions such as cardiac surgery complications, cirrhosis, and sepsis, as well as for fluid replacement and blood volume restoration. China and the United States represent the two largest global markets for this product, underlining the high stakes for any trade-related disruption in its supply chain.
While the majority of CSL’s albumin shipments to China are produced outside the United States, the company recently submitted a regulatory application to Chinese authorities seeking approval for albumin production at a facility in Australia. This step is part of CSL’s broader strategy to diversify its supply chain and secure long-term supply stability to the Chinese market.
Takeda and Grifols have not disclosed whether their U.S.-produced albumin products have been granted tariff exemptions by Chinese authorities. Neither China’s Ministry of Commerce nor its National Medical Products Administration has commented on the exemptions or on CSL’s regulatory application concerning the Australian facility.
By exploring alternate production sites and seeking clarity on potential tariff relief, CSL is positioning itself to navigate the complexities of an uncertain trade environment, ensuring continued access to vital medicines in one of its most significant markets.
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