The proposal by President Donald Trump to impose tariffs on pharmaceutical imports has sparked significant concern among generic drugmakers and industry experts. They warn that such tariffs could exacerbate drug shortages and lead to higher prices for consumers.

Generic drug manufacturers already operate under narrow profit margins and face intense competition. The added costs from tariffs may hinder their ability to supply medications in the United States, especially since these companies generally find it harder to pass on costs compared to brand-name drug manufacturers. John Murphy III, CEO of the Association for Accessible Medicines, highlights that some companies might find the financial situation so dire that they opt not to import products into the U.S., further intensifying the existing drug shortage crisis.

Currently, the U.S. is experiencing over 270 active drug shortages, with antibiotics being particularly affected. The situation is precarious; about 40% of generic drugs are produced by only one or two companies, creating a fragile supply chain. If a manufacturer exits the market, it could severely limit access to essential medications, resulting in increased prices and challenges for pharmacies and hospitals.

In summary, imposing tariffs on pharmaceutical imports could disrupt the already fragile supply of generic drugs, leading to higher prices and exacerbating drug shortages, ultimately affecting patient access to necessary medications.