Trump wants to put tariffs on prescription drugs. Experts warn it could backfire.

Published On Feb 8, 2025, 8:10 AM

Donald Trump is threatening to impose tariffs on foreign-made prescription drugs, aiming to encourage drug manufacturers to relocate production to the U.S. While the intention is to bolster domestic manufacturing, experts warn that these tariffs could lead to increased drug prices and shortages, particularly of generic medications. Nearly two-thirds of generic drugs are produced overseas, and tariffs could exacerbate existing supply issues and overall healthcare costs without significantly increasing domestic production. Experts suggest that while some patented drugs might see a strategic shift due to tariffs, the impact on generics could be negative, prompting manufacturers to exit the market rather than absorb additional costs.