Here are five more notes:
- China plays a significant role in the production of active pharmaceutical ingredients, the building blocks of most drugs, with about 80% of APIs used in U.S. medications coming from overseas. In 2023, China operated 219 API facilities, up from 134 in 2021.
- Many of the generic drugs Americans rely on — including antibiotics, cancer treatments and blood thinners — are manufactured overseas, where labor and production costs are lower. Since generics account for 90% of prescriptions in the U.S., any disruption in supply chains such as tariff-induced cost increases could lead to shortages and force companies to pass on the additional costs to consumers, according to NBC News.
- Experts said the effects of the tariffs would not be immediate because while companies often have months of inventory for APIs, the cost implications will likely begin to be felt in the coming months.
- The Association for Accessible Medicines, which represents generic drug manufacturers, has urged the Trump administration to provide exemptions for critical medical supplies. “From the base ingredients to the finished products, U.S. medicines rely on a global supply chain that is already stressed,” John Murphy III, CEO of the association, told the news outlet.
- Despite protections such as state anti-gouging laws and a Biden-era tax targeting excessive drug price hikes, there are concerns that hospitals and pharmacies may stockpile medications to avoid paying higher prices. In addition, the tariff measure may delay efforts to increase domestic production, as generic drugs typically do not generate enough profit to justify the cost of building new manufacturing plants, experts said.
