
Trump’s New Tariffs Could Drive Up Health Care Costs, Experts Warn
Taxing imports to the US could spell major consequences for health care prices, innovation, and access, as a great amount of medical supplies and ingredients are manufactured overseas.
The Trump administration has imposed a
The US depends on other countries a great deal for pharmaceutical imports. In 2022, the US imported approximately $168 billion worth of pharmaceutical products—the most in the world. Coupled with the fact that China produces more active pharmaceutical ingredients (APIs) than any other country, which are used in both generic and brand-name drugs, steep tariffs pose a great threat to the US pharmaceutical industry, health providers, and consumers alike, the American Medical Manufacturer Association
“Generic manufacturers simply can’t absorb new costs,” John Murphy III, president and CEO of the Association for Accessible Medicines, said in a
As these tariffs potentially force generic drug manufacturers’ withdrawal from the market, this shift could exacerbate existing drug shortages and increase patients’ health care costs. The Healthcare Distribution Alliance noted how distributors already experience minimal profit margins, registering at just 0.3%. The ripple effect of these tariffs will place
Medical devices and supplies will be also impacted as many of these products are imported from countries such as Mexico, Canada, and India. Hospitals will especially feel these effects as they depend on everyday items like gloves, gowns, and syringes, as well as bigger equipment for x-rays.
In a
According to a report from The Budget Lab at Yale University, the
In light of these challenges, various industry groups such as AdvaMed, The Healthcare Distribution Alliance, the Association for Accessible Medicines, and others have pushed for exemptions of medical products from tariffs and promoting policies that encourage domestic manufacturing to strengthen the healthcare supply chain. However, establishing new manufacturing facilities domestically presents significant challenges, including high costs and extended timelines.3
In Trump’s first term, tariffs imposed on Chinese imports did not apply to the majority of medical devices. With Trump expected to make a new announcement on Wednesday, April 9, it remains unclear how medical and pharmaceutical
References
1. Picchi A. See the full list of reciprocal tariffs by country from Trump’s “Liberation Day” chart. CBS News. Updated April 5, 2025. Accessed April 7, 2025.
2. Ramkumar A. The ripple effect Trump’s tariffs will have on the rest of his agenda. Wall Street Journal. April 7, 2025. Accessed April 7, 2025.
3. Leake L. Patients will pay more for prescription meds and face drug shortages amid Trump tariffs, pharma groups warn. American Medical Manufacturer Association. Updated February 17, 2025. Accessed April 7, 2025.
4. Association for Accessible Medicines comments on new tariffs. Association for Accessible Medicines. News release. February 2, 2025. Accessed April 7, 2025.
5. Trump tariffs could raise medication costs and exacerbate shortages, drug trade groups warn. American Medical Manufacturer Association. February 16, 2025. Accessed April 7, 2025.
6. AdvaMed seeks medical technology exemption from all tariffs. AdvaMed. News release. AdvaMed. February 1, 2025. Accessed April 7, 2025.
7. The fiscal, economic, and distributional effects of illustrative “reciprocal” U.S. tariffs. The Budget Lab. Updated February 19, 2025. Accessed April 7, 2025.
9. Hopkins JS. Pharma companies lobby for delayed, gradual drug tariffs. Wall Street Journal. Updated April 1, 2025. Accessed April 7, 2025.
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