April 9, 2025
CNN Health recently published an article featuring Rena Conti, Associate Professor of Markets, Public Policy and Law, discussing how experts warn that Trump’s proposed pharmaceutical tariffs would likely raise drug prices and worsen shortages before boosting U.S. manufacturing.
While Trump argues tariffs will drive domestic production and lower costs, analysts caution they could destabilize the generic drug market, particularly antibiotics and injectables, by increasing ingredient costs and driving out low-margin producers. Branded drugmakers may pass added costs to consumers, raising premiums and copays. Though companies like Eli Lilly are investing in U.S. facilities, experts say tariffs alone won’t spur rapid production and advocate for long-term reforms to strengthen the drug supply chain without risking access.
This concern is underscored by the fact that an estimated 40% of generic drugs have only one or two suppliers making their ingredients, Conti added.
Ultimately, without comprehensive reforms and targeted investment, tariffs risk doing more harm than good to drug affordability and access in the near term.