Trade groups fear impact of Trump tariffs on generic meds

US President Donald Trump has implemented a series of tariffs on imports from Canada, Mexico and China, but the additional taxes could affect the price Americans pay for generic drugs, with pharma trade groups expressing their fears about the consequences.

A 25% tariff will be imposed on Canada and Mexico as well as a 10% tariff on China starting right away. The USA imported about $11 billion in pharmaceutical products from the three countries in 2022, with more than half coming from Canada, according to findings of the Observatory of Economic Complexity.

“The global supply chain for generic and biosimilar medicines is critically important for US patients. From the base ingredients to the finished products, US medicines rely on a global supply chain that is already stressed and in need of strengthening.” said John Murphy III, president and chief executive of the Association for Accessible Medicines (AAM). “Tariffs on products from Canada, Mexico, and China could increase already problematic drug shortages.”