President-elect Donald Trump’s proposed tariffs on products from China and other foreign countries could lead to increased costs for generic drugs for many people. Most generic drugs, which make up 90% of all prescriptions filled in the U.S., are manufactured overseas, with about half of them being produced abroad. If tariffs are imposed, importing generic drugs is likely to become more expensive, potentially increasing costs for patients or forcing generic drugmakers out of the U.S.
Experts warn that tariffs could worsen ongoing drug shortages, as disruptions to the supply chain can lead to shortages and price increases. The U.S. is already facing shortages of lifesaving medications and common drugs, with 277 active drug shortages, half of which have persisted for two or more years. Tariffs could also impact the cost of brand-name drugs, although patients may not notice as they are already expensive.
The concern is that if generic drug manufacturers drop out due to tariffs making it unprofitable, prices could skyrocket or shortages could occur. Trump’s transition team has not indicated whether an exemption on generic drugs will be granted, but the potential impact on drug prices and availability is a significant concern raised by experts in the field.
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