The Cost of Generic Drugs in the U.S. Could Increase Due to Trump’s Tariffs

President-elect Donald Trump has proposed imposing tariffs on products from China and other countries, which could increase the cost of generic drugs for many people. Generic drug manufacturing has shifted overseas, with about half of all generic drugs and 80% of active pharmaceutical ingredients being produced abroad. The Association for Accessible Medicines estimates that generic drugs make up 90% of all prescriptions filled in the U.S. The tariffs could make importing generic drugs more expensive, potentially leading to higher costs for patients or pushing generic drugmakers out of the U.S. Even if tariffs are only imposed on active ingredients, costs could still rise. Additionally, the tariffs may not encourage more domestic manufacturing due to low profit margins in the generic drug industry. The added costs could worsen drug shortages, which are already a significant issue in the U.S. The impact of tariffs on brand-name drugs would be less noticeable, as they are already expensive, but generic drugs could see a significant increase in prices if more manufacturers drop out of the market. The potential for shortages and price hikes is a major concern for experts in the medical field.

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