Tariffs may worsen U.S. generic drug shortages

Generic drugmakers and hospital pharmacists warn that tariffs on Chinese imports could worsen existing drug shortages in the U.S. The 20% tariffs may raise costs and reduce supplies of essential medications, as China is a key supplier of drug ingredients. Before the tariffs, drug shortages were already a significant issue, peaking in early 2024. Factors like manufacturing disruptions and geopolitical tensions have led companies to seek alternative sources for drug ingredients to mitigate risks. While brand-name drug prices are less likely to rise, generic manufacturers may struggle to absorb tariff costs. Policies limiting price increases for Medicare and Medicaid drugs could further complicate the situation for generic drug production in the U.S.