President-elect Donald Trump’s proposal to impose tariffs on products from China and other countries could result in increased costs for generic drugs. Currently, about half of all generic drugs are manufactured overseas, with 80% of active pharmaceutical ingredients being produced abroad. Tariffs on these products could lead to higher prices for consumers and force struggling generic drugmakers out of the U.S.
Experts warn that tariffs could exacerbate ongoing drug shortages in the U.S., with 277 active shortages already reported by the American Society of Health-System Pharmacists. These shortages are often caused by disruptions in the supply chain, such as natural disasters or tariffs.
While tariffs may not significantly impact prices for brand-name drugs, which are already expensive, they could have a significant impact on generic drug prices. If manufacturers decide to stop selling due to increased costs, remaining manufacturers may raise prices or face shortages. This would ultimately lead to higher costs for patients and potentially compromise access to essential medications.
Overall, experts caution that tariffs on generic drugs could have unintended consequences, such as driving up prices, exacerbating shortages, and impacting the resilience of the U.S. drug supply chain.
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