Experts warn: Trump’s tariffs could drive up drug prices and cause shortages
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A single policy change can send shockwaves through global trade, affecting everyday lives in unexpected ways. For older Americans who depend on vital medications, a new decision could mean soaring prices and alarming shortages.
Could a recent move by the Trump administration put your prescriptions at risk?
President Donald Trump’s executive order, imposing a 10% tariff on a wide range of Chinese imports, may have unexpected consequences for the medications many Americans rely on.
Some experts warn that this policy could impact the cost and availability of generic drugs in the United States.
Dr. Aaron Kesselheim, a Harvard Medical School professor who studies prescription drugs, notes that about half of the generic medications used in the US—including treatments for cancer, infections, and blood conditions—are produced entirely overseas, where manufacturing costs are lower.
This issue becomes more significant considering that 80% of the active pharmaceutical ingredients (APIs) used in medications are imported, with China playing an increasingly important role in the supply chain.
Many Americans are mindful of healthcare costs, and with generic drugs accounting for about 90% of all prescriptions filled in the US, any price increase could have a significant impact.
Generic medications offer a lower-cost alternative to brand-name drugs and are typically priced just above the cost of production.
Because of these slim profit margins, added expenses like tariffs could force manufacturers to either absorb the costs, which may affect their financial stability, or pass them on to consumers, potentially leading to higher prices.
Drug shortages could be an immediate result of the tariffs, with price increases expected to follow within a few months.
Kesselheim explains that the drug distribution system relies on contracts, and it may take time to adjust them to account for the higher production costs.
Vimala Raghavendran, a vice president at the US Pharmacopeia, highlights an additional aspect of this issue.
Companies typically maintain several months’ worth of API inventory, meaning the full impact of the tariffs may not be immediate but will gradually affect the supply chain.
John Murphy III, head of the Association for Accessible Medicines, has urged the Trump administration to exempt these crucial goods from the tariffs, citing the already pressured global supply chain supporting US drug production.
At the time of the original article’s publication, the White House had not responded to these concerns.
Despite the potential for higher drug costs, there are some safeguards in place.
Rena Conti, an associate professor at Boston University, points to state anti-price gouging laws and a Biden-era tax on drugmakers that raise prices faster than inflation as possible measures to soften the impact on consumers.
However, Conti also expresses concerns about how hospitals and pharmacists may react by stockpiling drugs in anticipation of price increases.
“Better resourced hospitals and pharmacies have enough money or wherewithal to call their wholesaler to see if they can buy more of certain types of products,” Conti explained.
“[But] [m]om-and-pop pharmacies or small hospitals, rural hospitals that don’t actually buy a lot of drugs to begin with, they’re going to have difficulty getting things if they’re panic-buying,” she added.
Arthur Caplan, a medical ethics expert at NYU Langone Medical Center, questions whether the tariffs will stimulate domestic production of generics, as the business may not be profitable enough to warrant the investment in new manufacturing facilities.
Additionally, Trump’s tariffs on neighboring countries like Mexico and Canada complicate the situation further, reducing options for addressing these challenges.
Also read: The Trump administration has imposed tariffs on imports from Canada and Mexico, which could affect your daily expenses.
As we face the intersection of healthcare and policy, it’s evident that decisions made in government have real-world implications on daily life.
For the GrayVine community, staying informed is an important first step in understanding these changes. It’s essential to know how these tariffs might impact your budget and access to healthcare.
We encourage you to consult with your healthcare providers about the potential effects on your medication regimen.
Consider exploring alternative treatment options or generic drug substitutions that may be less affected by the tariffs.
It’s also a good idea to review your insurance coverage to ensure you’re prepared for any changes in drug pricing.
By supporting one another, we can navigate this uncertain period, working to ensure access to necessary medications at affordable prices.
Have you noticed changes in the cost of your medications? Are you concerned about potential drug shortages? Share your experiences and thoughts in the comments below.
Could a recent move by the Trump administration put your prescriptions at risk?
President Donald Trump’s executive order, imposing a 10% tariff on a wide range of Chinese imports, may have unexpected consequences for the medications many Americans rely on.
Some experts warn that this policy could impact the cost and availability of generic drugs in the United States.
Dr. Aaron Kesselheim, a Harvard Medical School professor who studies prescription drugs, notes that about half of the generic medications used in the US—including treatments for cancer, infections, and blood conditions—are produced entirely overseas, where manufacturing costs are lower.
This issue becomes more significant considering that 80% of the active pharmaceutical ingredients (APIs) used in medications are imported, with China playing an increasingly important role in the supply chain.
Experts predict that medication prices could rise in the coming months. Image source: Haley Lawrence/Unsplash.
Many Americans are mindful of healthcare costs, and with generic drugs accounting for about 90% of all prescriptions filled in the US, any price increase could have a significant impact.
Generic medications offer a lower-cost alternative to brand-name drugs and are typically priced just above the cost of production.
Because of these slim profit margins, added expenses like tariffs could force manufacturers to either absorb the costs, which may affect their financial stability, or pass them on to consumers, potentially leading to higher prices.
Drug shortages could be an immediate result of the tariffs, with price increases expected to follow within a few months.
Kesselheim explains that the drug distribution system relies on contracts, and it may take time to adjust them to account for the higher production costs.
Vimala Raghavendran, a vice president at the US Pharmacopeia, highlights an additional aspect of this issue.
Companies typically maintain several months’ worth of API inventory, meaning the full impact of the tariffs may not be immediate but will gradually affect the supply chain.
John Murphy III, head of the Association for Accessible Medicines, has urged the Trump administration to exempt these crucial goods from the tariffs, citing the already pressured global supply chain supporting US drug production.
At the time of the original article’s publication, the White House had not responded to these concerns.
Despite the potential for higher drug costs, there are some safeguards in place.
Rena Conti, an associate professor at Boston University, points to state anti-price gouging laws and a Biden-era tax on drugmakers that raise prices faster than inflation as possible measures to soften the impact on consumers.
However, Conti also expresses concerns about how hospitals and pharmacists may react by stockpiling drugs in anticipation of price increases.
“Better resourced hospitals and pharmacies have enough money or wherewithal to call their wholesaler to see if they can buy more of certain types of products,” Conti explained.
“[But] [m]om-and-pop pharmacies or small hospitals, rural hospitals that don’t actually buy a lot of drugs to begin with, they’re going to have difficulty getting things if they’re panic-buying,” she added.
Arthur Caplan, a medical ethics expert at NYU Langone Medical Center, questions whether the tariffs will stimulate domestic production of generics, as the business may not be profitable enough to warrant the investment in new manufacturing facilities.
Additionally, Trump’s tariffs on neighboring countries like Mexico and Canada complicate the situation further, reducing options for addressing these challenges.
Also read: The Trump administration has imposed tariffs on imports from Canada and Mexico, which could affect your daily expenses.
As we face the intersection of healthcare and policy, it’s evident that decisions made in government have real-world implications on daily life.
For the GrayVine community, staying informed is an important first step in understanding these changes. It’s essential to know how these tariffs might impact your budget and access to healthcare.
We encourage you to consult with your healthcare providers about the potential effects on your medication regimen.
Consider exploring alternative treatment options or generic drug substitutions that may be less affected by the tariffs.
It’s also a good idea to review your insurance coverage to ensure you’re prepared for any changes in drug pricing.
By supporting one another, we can navigate this uncertain period, working to ensure access to necessary medications at affordable prices.
