Trump tariffs could raise medication costs and exacerbate shortages, drug trade groups warn

President Donald Trump’s tariffs on Canada, Mexico, and China could worsen existing drug shortages in the U.S., raise healthcare costs for patients, and threaten generic drugmakers, according to some drug trade groups. The tariffs, announced on Saturday, include a 25% charge on goods from Canada and Mexico and a 10% charge on imports from China. Mexico’s President Claudia Sheinbaum Pardo stated that the U.S. would delay the proposed tariffs on Mexico for one month after the country agreed to enhance border security. The tariffs are intended to stop the flow of fentanyl and undocumented immigrants into the U.S. However, the U.S. relies heavily on other countries for pharmaceutical products, especially generics, which make up 90% of Americans’ prescriptions. Tariffs could increase drug shortages and force generic manufacturers out of the market due to low profit margins. The Healthcare Distribution Alliance and the Association for Accessible Medicines have called for the Trump administration to exempt pharmaceutical products from the tariffs, citing potential adverse effects on patients and the pharmaceutical supply chain. The U.S. also relies on overseas manufacturing for medical devices, and tariffs could lead to higher costs and shortages of critical medical technologies.

— news from CNBC