Trump tariffs and drugs: How a trade war with China could worsen medicine shortage
Source: USA Today
Published 5:02 a.m. March 15, 2025
As President Donald Trump on Thursday contemplated extending a global trade war to imports from Europe, the health-care industry is gauging potential fallout from tariffs levied on goods imported from China. Health analysts and generic drug manufacturers said the 20% levy from two rounds of tariffs on goods imported from China - a major supplier of medical equipment and prescription drugs for the United States − could shrink inventories and raise prices.
Hospitals, doctors and consumers filling prescriptions at their local pharmacy might feel the effects, though not immediately, pharmaceutical supply and pricing experts told USA TODAY. China is among the largest suppliers of ingredients used in generic drugs, and about 90% of prescriptions filled in the U.S. are generics, research shows.
White House officials said the tariffs are a necessary emergency action because China hasn't halted the flow of fentanyl precursor chemicals to cartels who smuggle the illicit drugs to the U.S. China has promised to "resolutely counter" pressure from the U.S, according to Reuters. Organizations representing makers of generic drugs and hospital pharmacists warn that added financial pressure from tariffs could strain the nation's generic drug supplies.
Tariffs would "exacerbate already-problematic drug shortages," said John Murphy, president and CEO of the Association for Accessible Medicines, in a letter Tuesday to U.S. Trade Representative Jamieson Greer. "Generic manufacturers simply can’t absorb new costs," Murphy said in a statement last month. "Our manufacturers sell at an extremely low price, sometimes at a loss, and are increasingly forced to exit markets where they are underwater."
Read more: https://www.usatoday.com/story/money/2025/03/15/trump-tariffs-prescription-drug-shortages/81804811007/
Most of the bulk "API"s (Active Pharmaceutical Ingredients) come from China and India.
And as a note, there ARE legitimate uses of fentanyl.
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