U.S. Generic Drug Prices May Increase Due to Trump’s Tariffs

The cost of generic drugs for many people may increase if President-elect Donald Trump imposes tariffs on products from China and other foreign countries as promised during his campaign. A majority of generic drugs are manufactured overseas, with about half of them being made outside of the U.S. and 80% of active pharmaceutical ingredients produced abroad. Tariffs on generic drugs could lead to increased costs for patients or result in more generic drugmakers leaving the U.S. Tariffs on active ingredients could still impact costs even if the finished products are made in the U.S. A lack of domestic generic drug manufacturing facilities makes it unlikely that tariffs would spur more production in the U.S. The added cost could worsen ongoing drug shortages in the country, affecting the supply chain and leading to price increases. This could result in fewer generic drug manufacturers in the market, potentially causing prices to skyrocket or creating shortages. Brand-name drugs, which are already expensive, may also be affected by tariffs, although patients may not notice a significant difference. The potential impact of tariffs on generic drugs is concerning for experts, as it could lead to higher costs and reduced accessibility for patients.

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