Trump tariffs threaten pharmaceuticals

by Aris Folley and Taylor Giorno - 12/31/24 6:19 PM ET

Business & Economy

The Big Story

Trump tariffs could upend pharma supply chain

The hefty tariffs President-elect Trump has pledged to levy on U.S. imports could impact the price and availability of pharmaceutical drugs.

Trump has floated 25 percent tariffs on imports from Mexico and Canada and additional tariffs on Chinese imports.

Economists have warned Trump’s tariff plan could cause prices and inflation to rise, and Trump this month acknowledged that he “can’t guarantee” they won’t increase costs for consumers.

Health care industry insiders are concerned that Trump’s tariff plan could not only raise the price of drugs but also lead to shortages in the U.S.

Canada, China and Mexico are among the top five countries that import pharmaceutical drugs to the U.S.. China accounts for nearly a quarter of all such imports as of 2021, and supply chain experts are hoping any tariffs enacted will be nuanced.

Generic drugs, medical equipment and medical devices and their components are among the most vulnerable in the medical supply chain, according to health industry experts.

The Hill’s Joseph Choi has more here.

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