President Donald Trump’s plan to impose tariffs on pharmaceutical imports has raised concerns among generic drug manufacturers and industry experts. Such tariffs could lead to increased drug shortages and higher prices. Generic drugmakers already face stiff competition and narrow profit margins. Adding tariffs might further strain their ability to operate in the U.S., particularly since they may find it harder to recover these costs compared to brand-name drug manufacturers. According to John Murphy III, CEO of the Association for Accessible Medicines, some companies might struggle so much financially that they may not be able to bring their products into the U.S., potentially worsening existing drug shortages. Currently, there are 270 active drug shortages in the U.S., with antibiotics being a significant concern. With 40% of generic drugs having only one or two companies producing their ingredients, the supply chain is considered fragile. If multiple manufacturers cease production, prices could rise, affecting patients who rely on these medications. The Trump administration is investigating pharmaceutical imports to justify tariffs on national security grounds, with details expected in the coming months. Tariffs on imports from India and China could be particularly impactful, as these countries supply a large portion of the ingredients for generic drugs. Some analysts argue that tariffs won’t significantly shift drug manufacturing to the U.S. and could instead hinder such efforts. — new from CNN
