If President-elect Donald Trump imposes tariffs on products from China and other foreign countries, the cost of generic drugs for many people could increase. Currently, about half of all generic drugs are manufactured overseas, and about 80% of active pharmaceutical ingredients are produced abroad in countries like China and India. Tariffs could make importing generic drugs more expensive, potentially leading to higher costs for patients or causing more generic drugmakers to leave the U.S.
Experts warn that tariffs may not lead to more generic drug manufacturing in the U.S. since generic drugs are not very profitable. Additionally, tariffs could worsen the ongoing drug shortages in the U.S., which include lifesaving medications like chemotherapy drugs and IV fluids. The American Society of Health-System Pharmacists reports that there are currently 277 active drug shortages in the U.S., with some persisting for more than two years.
Tariffs could also impact the cost of brand-name drugs, although patients may not notice a significant difference due to their already high prices. However, generic drugs, which are typically sold at close to the cost of production, could see prices increase significantly if more manufacturers drop out of the market. This could lead to market concentration and a risk of shortages, ultimately impacting patients’ access to affordable medications.
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