President Donald Trump’s steep tariffs on Canada, Mexico, and China could worsen existing drug shortages in the US, raise healthcare costs for patients, and threaten cash-strapped generic drugmakers. The proposed import taxes come as the US grapples with an unprecedented shortfall of crucial medicine.
The US relies heavily on other countries for pharmaceutical products, especially generic drugs, which make up 90% of Americans’ prescriptions. Tariffs could potentially threaten many patients’ access to affordable treatments, particularly from China, which is a large supplier of active pharmaceutical ingredients (APIs) due to lower manufacturing costs.
Generic manufacturers warn that they cannot absorb new costs, and the Trump administration should exempt generic products from tariffs. The Healthcare Distribution Alliance, representing 40 drug distributors, has also called for reconsidering pharmaceutical products in tariffs, as it would strain the supply chain and affect American patients.
An estimate from Yale University suggests long-term prices of pharmaceutical products will be 1.1% higher due to shifts in the supply chain. Pharmaceutical companies and medical device associations urge caution, emphasizing that trade measures should focus on addressing unfair practices abroad and safeguarding intellectual property.
The US also relies on overseas manufacturing for medical devices, with many key components sourced from countries like China, Mexico, and India. Tariffs could lead to shortages of critical medical technologies, higher prices for patients and payers, and less investment in research and development.
Source: https://www.cnbc.com/2025/02/03/trump-tariffs-drug-costs-shortages.html