President Trump’s decision to move closer to imposing tariffs on imported medicines poses significant political risk, as Americans could face higher prices and more shortages of critical drugs. The Trump administration has begun an investigation into whether imports of medicines and pharmaceutical ingredients threaten America’s national security, a move to lay the groundwork for possible tariffs on foreign-made drugs. Experts say that tariffs are unlikely to achieve the goal of shifting drug manufacturing back to the United States, as moving production would be expensive and time-consuming.
Mr. Trump has said he plans to impose pharmaceutical tariffs, which could harm his popularity among working-class voters. Democrats have seized on the issue, warning that tariffs would harm Americans and result in higher out-of-pocket costs for patients. Many generic drug manufacturers could be forced to curtail or stop production due to thin profit margins.
The tariffs would be paid by drug companies, which would likely pass on the costs to employers and government programs like Medicare and Medicaid. This would ultimately affect patients, who could face higher out-of-pocket costs, higher co-payments, and in future years, higher health insurance premiums. Some pharmaceutical companies have announced plans to build new plants in the US, but experts say the tariffs are not enough to bring most drug production back to the US.
The Trump administration is taking aim at Ireland, where most American drugmakers have a manufacturing presence, including some big tax advantages. Irish officials fear that tariffs could prompt drugmakers to pull back from investments in the country.
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