New Tariffs on Imported Drugs under Trump's Plan May Trigger Price Surge & Supply Gaps

Prescription drugs that are often made or contain ingredients from China and India are stocked up in American households.

Patients may face rising costs and potential shortages if former President Donald Trump proceeds with his proposed tariffs on imported prescription medications warned by pharmaceutical experts.

President Trump has consistently stated his intention to take trade actions regarding drug imports. While pharmaceutical companies were exempt from the blanket 10 per cent tariff on most imported goods announced earlier this month.

On April 8, Trump revealed that his administration would soon implement a "major tariff on pharmaceuticals" imported into the U.S. During a press meeting on April 9, Trump remarked, "We don't make our drugs and our pharmaceuticals in this country." He stated that he’s going to put tariffs on the pharmaceutical companies, and they are going to all want to come back.

Once a drug loses patent protection, the generic manufacturers can produce and sell comparable versions, which helps reduce prices for consumers.

Mariana Socal, an associate professor of health policy and management at Johns Hopkins Bloomberg School of Public Health, stated that these medications depend on cost-effective materials, ingredients, and manufacturing in countries like China and India, so tariffs are likely to impact the prices and production of generic drugs, 

According to the American Society of Health-System Pharmacists, the number of drugs in shortage reached a high of 323 in the first quarter of 2024, but decreased to 270 by March. The U.S. healthcare system has faced recurring drug shortages for over twenty years.

In some cases, drug manufacturers ceased production of certain medications altogether. The causes of these shortages varied, from natural disasters like hurricanes to factory contamination that halted production lines.

Mariana Socal said that it’s more likely millions and millions of people will be affected by this on generic imports.