Trump’s tariffs could increase drug costs, worsen scarcity

President Donald Trump’s steep duty In Canada, Mexico and China could worsen the shortage of drugs in the US. UU., Increase medical care costs for patients and threaten generic medication manufacturers with cash problems, warn some drug trade groups.

Trump announced on Saturday that he would impose a 25% rate to almost all goods sent from Canada and Mexico and a 10% position on China imports, all of which entered into force on Tuesday. On Monday, the president of Mexico, Claudia Sheinbaum Pardo, said that United States delay your proposed rates In the country for a month after Mexico agreed reinforce security on its border.

Trump has said that tariffs will remain in place until the three countries stop the Fentanyl flow and undocumented immigrants to the United States.

But import taxes occur when the United States faces unprecedented crucial medicine deficit that extends From injectable to generic cancer therapies, or cheaper versions of brand drugs, which has forced hospitals and patients to ration medicines. It also occurs as many Americans fight to pay the high costs of prescription medications.

USA. It contains a lot In other countries for pharmaceutical products, especially for generic medicines. Those medications Compensate 90% Of the recipes of the Americans, so tariffs could threaten the access of many patients to affordable treatments.

China in particular is a great supplier of active pharmaceutical ingredients, or API, both for brand and generic medicines due to lower manufacturing costs in the country. APIs are the main component of a medicine that causes the desired effect of treatment. Some generic medications are manufactured abroad completely.

Rates could “increase drug scarcity and problematic” by forcing generic manufacturers to the market due to low profit margins, according to a statement By John Murphy, CEO of the association of accessible medicines, which represents generic pharmaceutical companies.

“Generic manufacturers simply cannot absorb new costs,” Murphy said Sunday. “Our manufacturers sell at an extremely low price, sometimes with losses, and they are increasingly forced to leave the markets where they are under water.”

He urged the Trump administration to exempt generic products from tariffs, adding that the general value of all generic sales in the US. The new drug releases.

The health distribution alliance, which represents 40 drug distributors, has also requested that the Trump Reconsidar administration, including pharmaceutical products in tariffs. In a statement on Sunday, the group said that tariffs would force the pharmaceutical supply chain and “could negatively affect US patients,” either through higher costs of medical products or manufacturers that leave the market.

The group said that tariffs will exert additional pressure on an industry that is already in financial difficulties, pointing out that distributors operate with low profit margins of only 0.3%.

The United States is likely to see “new scarcity and worsened with important medicines”, and those costs “will be transmitted to payers and patients, including those of Medicare and Medicaid programs,” said the health distribution alliance.

A estimate From the Budget Laboratory at Yale University, he said that the long -term prices of pharmaceutical products in the US will be 1.1% higher after changes in the supply chain.

Pharmaceutical research and manufacturers in America, which represents pharmaceutical companies, said in a statement that it shares Trump’s goal to ensure that the United States maintains its “global leadership in innovation and biopharmaceutical manufacturing.”

Commercial measures must focus on “addressing unfair practices abroad and safeguarding our intellectual property,” the group added.

For example, Intuitive surgicalwhich manufactures robotic surgical systems, revealed in its annual report Last week that a “significant majority” of the company’s instruments and accessories are manufactured in Mexicali, Mexico.

Tariffs in the country “would increase the costs of our products manufactured in Mexico and negatively affect our gross gain,” said the company.

Advirted, the Association of Larger Medical Devices worldwide, urged the Trump administration to exempt tariff medical products. In a statement, the group said that import taxes could lead to the shortage of critical medical technologies, higher prices for patients and payers, and less investment in research and development.

Tariffs and associated costs essentially work as “a specific tax in practice,” said Advombor, noting that Trump provided a size for much of the medical technology sector when he imposed tariffs on China during his first mandate.

Tariffs could also affect hospitals, which depend on everyday supply imports, such as dresses, gloves and syringes, along with larger items such as X -ray equipment.

But the American Association of Medical Manufacturers, which advocates from US companies that produce medical personal protection equipment, or PPE, supports tariffs on China and the increase in national production of these products.

In a statement on Monday, the group said that tariffs recognize that China “has not changed their forms and continues to participate in anti -competitive and dangerous behavior that harms the manufacturers of medical supplies and PPE from the United States. UU. And threatens our chains of NATIONAL SUPPLY AND SECURITY “.

During the pandemic, the American Association of Medical Manufacturers accused China to reduce the price of facial masks to undermine American producers.