Experts Warn Tariffs Could Negatively Impact 'Pretty Fragile Supply' Of Generic Drugs

2 months ago 14

Madison Troyer

Sun, Apr 27, 2025, 12:44 PM 4 min read

With pharmaceutical tariffs expected to beryllium announced successful the adjacent 30 to 60 days, experts are informing they could negatively interaction the "pretty fragile supply" of generic drugs
The fiscal consequences of the levies connected countries similar China and India, which marque galore of the ingredients indispensable for the drugs, whitethorn beryllium truthful dire that the companies halt doing concern with the U.S. entirely
This could person monolithic consequences, arsenic 90% of medications prescribed successful the U.S. are generic

When President Donald Trump announced his archetypal circular of tariffs connected April 2, pharmaceuticals were exempted. But astatine an April 8 meal of the National Republican Congressional Committee, helium told attendees that "major" pharmaceutical tariffs would beryllium announced "very shortly." Now, experts are informing that the imposition of those levies could pb to large shortages and terms increases for generic drugs.

According to CNN, generic cause companies are already struggling to woody with expanding contention and choky nett margins. Adding hefty levies connected apical of those existing issues could permission these companies successful a presumption wherever they'd beryllium incapable to recoup the further expenses, and truthful incapable to bash concern successful the U.S.

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"A resilient and reliable generic medicines proviso concatenation is captious to diligent health, U.S. healthcare and nationalist information interests. Tariffs, however, volition lone amplify the problems that already beryllium successful the U.S. marketplace for affordable medicines. Without substantive regulatory and reimbursement changes to the U.S. market, tariffs volition exacerbate existent shortages that hinder diligent entree today, John Murphy III, CEO of the Association for Accessible Medicines, said successful a statement.

There are presently implicit 250 cause shortages successful the U.S., down from the all-time precocious of 323 successful aboriginal 2024. According to the American Society of Health-System Pharmacists, shortages of antibiotics are a peculiar problem.

And it's poised to get worse. Rena Conti, an subordinate prof astatine Boston University, told CNN that there's already "a beauteous fragile supply" of generic drugs successful general, arsenic astir 40% of generic medications person conscionable 1 oregon 2 companies making their ingredients. If these factories are deed by tariffs oregon forced to unopen down by rising prices, we could spot a immense driblet successful proviso and/or a immense spike successful prices.

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