President Donald Trump has been threatening to impose tariffs on pharmaceutical imports, prompting major drugmakers to make commitments to increase domestic manufacturing operations in the US. The investments total $272 billion and include plans from AstraZeneca, Johnson & Johnson, and Eli Lilly.
However, experts say that these moves may not necessarily lead to a decrease in reliance on foreign sources for key ingredients and drugs. Complex supply chains involving multiple countries mean that even with increased domestic production, many medications will still be sourced from abroad.
The industry’s reliance on global partnerships means that tariffs won’t spur more domestic manufacturing of generic drugs, which account for over 90% of US prescriptions. Generic medicine manufacturers can’t afford to cover the higher production costs and may pull out of the US market, exacerbating shortages.
Experts warn that making more medications in the US won’t necessarily lead to lower prices for consumers. The cost of production is typically higher in the US, and prices are influenced by a complex health system involving manufacturers, insurers, and pharmacy benefit managers.
The White House claims that these commitments prove Trump’s strategy is working, but experts say that tariffs won’t significantly impact generic medicine production and may even lead to increased costs for consumers.
Source: https://edition.cnn.com/2025/08/02/business/drug-prices-trump-us-manufacturing