Pharmaceutical Industry Warns of Drug Shortages and Price Hikes Due to Trump’s New Tariffs
President Trump announced steep tariffs on imports from Canada (25%), Mexico (25%), and China (10%), set to take effect on February 4, 202513.
Pharmaceutical trade groups warn that these tariffs could exacerbate existing drug shortages in the U.S. and raise healthcare costs for patients23.
The U.S. relies heavily on other countries, especially China, for pharmaceutical products and active pharmaceutical ingredients (APIs)3.
Generic drug manufacturers, which operate on low profit margins, may be forced to exit markets due to increased costs, potentially worsening drug shortages3.
The Healthcare Distribution Alliance has called for the Trump administration to exempt pharmaceutical products from tariffs3.
The Association for Accessible Medicines warns that generic manufacturers cannot absorb new costs, which could lead to market exits and reduced access to affordable treatments4.
An estimate from Yale University suggests that long-term prices of pharmaceutical products in the U.S. could be 1.1% higher after supply chain shifts3.
The tariffs could strain the pharmaceutical supply chain, potentially leading to increased medical product costs and manufacturers leaving the market34.
Some analysts suggest that large pharmaceutical companies with diversified supply chains may be able to mitigate the impact of the tariffs1.
The pharmaceutical industry is calling for measures to address unfair practices abroad and safeguard intellectual property rather than imposing broad tariffs34.
Sources:
1. https://www.biospace.com/policy/trumps-tariffs-threaten-big-pharma-with-higher-costs-and-slimmer-margins
2. https://endpts.com/drug-prices-likely-to-soar-due-to-trump-tariffs-pharma-bodies-warn/
3. https://www.nbcphiladelphia.com/news/business/money-report/trump-tariffs-could-raise-medication-costs-and-exacerbate-shortages-drug-trade-groups-warn/4097675/?os=io....sxj9oul9%3Fno_journeystrue
4. https://www.pharmaceutical-technology.com/news/trump-tariffs-could-strain-medicine-supply-and-drive-drug-costs/