The US is heavily reliant on China for common medications, including pain relievers and antibiotics, with nearly all ibuprofen, hydrocortisone, acetaminophen, penicillin, and 90% of prescriptions filled in the US coming from Chinese manufacturers. The recent imposition of tariffs by President Trump could lead to a shortage of these essential drugs.
According to experts, the tariffs already have many Americans concerned about the economy, but this latest development poses a significant threat to public health. Apollo chief economist Torsten Sløk warned that empty shelves in US stores are imminent, with COVID-like shortages predicted for consumers and firms using Chinese products as intermediate goods.
The pharmaceutical industry is particularly vulnerable to these disruptions, with generic drugs making up 90% of prescriptions filled in the US. Profit margins for generic drugs are already thin, and increased costs due to tariffs could disincentivize manufacturers from producing certain pain-relief medications.
Key players in the industry fear that tariffs will exacerbate existing shortages, leading to higher prescription drug prices and decreased access for patients. American pharmaceutical companies may be hesitant to invest in domestic production due to the unpredictability of future tariff policies.
The White House has not yet commented on plans to exempt medications from tariffs, but experts warn that the consequences could be severe, with some predicting only five to seven weeks of full inventories on retail shelves before shortages become widespread.
Source: https://fortune.com/article/tariffs-threaten-pharmaceuticals-shortage-ibuprofen-china