Trump's China tariffs are likely to drive up drug prices and spur shortages
President Donald Trump’s executive order imposing a 10% tariff on Chinese imports is likely to drive up the cost of generic drugs in the United States and exacerbate drug shortages, experts say.
President Donald Trump’s executive order imposing a 10% tariff on Chinese imports is likely to drive up the cost of generic drugs in the United States and exacerbate drug shortages, experts say.
About half of generic drugs people take in the U.S. — including cancer drugs, antibiotics and blood thinners — are made entirely overseas, where manufacturing is cheaper, said Dr. Aaron Kesselheim, a professor of medicine at Harvard Medical School whose research focuses on prescription drugs.
An even greater share of the active pharmaceutical ingredients, or APIs, used in drugs comes from abroad: around 80%, he said.
China is increasingly playing a role in making these ingredients, according to data shared by United States Pharmacopeia, a nonprofit group that focuses on the safety of the drug supply chain. In 2023, China had about 219 API facilities, up from 134 in 2021, according to the group. India remains the largest global producer of APIs, with about half of all facilities.
Generic drugs account for about 90% of all prescriptions filled, according to the Association for Accessible Medicines, a trade group that represents generic drugmakers.
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