Trump tariffs could raise medication costs and exacerbate shortages, drug trade groups warn
President Donald Trump's steep tariffs on Canada, Mexico and China could worsen existing drug shortages in the U.S., raise health-care costs for patients and threaten cash-strapped generic drugmakers, some drug trade groups warn.
Trump on Saturday announced he would impose a 25% tariff on nearly all goods shipped from Canada and Mexico and a 10% charge on imports from China, all of which were set to take effect on Tuesday. On Monday, Mexico's president, Claudia Sheinbaum, said the U.S. would delay its proposed tariffs on the country for one month after Mexico agreed to beef up security at its border.
Trump has said the tariffs will remain in place until the three countries stop the flow of fentanyl and undocumented immigrants into the U.S.
But the import taxes come as the U.S. grapples with an unprecedented shortfall of crucial medicine ranging from injectable cancer therapies to generics, or cheaper versions of brand-name medicines, which has forced hospitals and patients to ration drugs. It also comes as many Americans struggle to afford the high costs of prescription medications.
The U.S. relies heavily on other countries for pharmaceutical products, especially for generic drugs. Those medications make up 90% of Americans' prescriptions, so tariffs could potentially threaten many patients' access to affordable treatments.
China in particular is a large supplier of active pharmaceutical ingredients, or APIs, for both brand-name and generic drugs due to lower manufacturing costs in the country. APIs are the main component of a drug that causes the desired effect of the treatment. Some generic drugs are manufactured overseas entirely.
The tariffs could "increase already problematic drug shortages" by forcing generic