The U.S. currently faces 270 active drug shortages, a number that has remained unchanged for the past three quarters. Proposed tariffs on imported pharmaceuticals could exacerbate these shortages and increase drug costs. About 90% of prescribed medicines in the U.S. are generics, which have lower profit margins and rely heavily on ingredients from China and India. Tariffs might force some generic drugmakers to exit the U.S. market. Americans pay two to three times more for prescription drugs than people in other developed countries, according to a 2024 RAND report. The impact of tariffs varies by drug type. Generic sterile injectables, used in hospitals, are particularly vulnerable due to complex manufacturing and low margins. Branded drugs, manufactured mostly in the U.S. and Europe, have higher profit margins and could see price increases passed onto consumers. In 2024, about 187 billion generic drug tablets and capsules were dispensed in U.S. pharmacies.
David Dayen
@ddayen
·
Apr 7 There are logistical impacts from trade policies, though not necessarily from tariffs, which are largely automated. Manufacturers revisiting sourcing, suppliers suspending shipments, & a tax on Chinese ships at U.S. ports could all spark shortages, says
@rkuttnerwrites
:
Carlos
@agent_of_change
·
Apr 5 “Tariffs will substantially increase prices—US consumers will bear the brunt on a wide variety of basic foods and essential goods that physically cannot be produced domestically, with the poorest households being hit the hardest. American industry will struggle with higher costs
narchyDreams
@mearmalite10
·
Apr 9 Remember when we thought the Covid shortages were a dry run?
A complete decoupling from China will do the same thing, maybe worse. Pausing other tariffs and keeping the China tariffs, while increasing them, seems to be a plausible thing that could happen.
Mav
@M4ver1ckTrades
·
Apr 9 Importers are just going to let their shit stay in the warehouses and not even receive them and pay tariffs. Even if they take a 100% loss in the product that’s better than paying 114% tariff. Watch now for supply issue, traffic jams at ports and waste. #TariffWars
Heath Mayo
@HeathMayo
·
Apr 3 It’s not just the stock market, folks.
Companies’ supply chains and inventory management are going to be thrown into a tailspin by this. Goods will be delayed just as demand is spiking to avoid coming price hikes. Price hikes will be quick and substantial given the uncertainty.
Brian Tycangco 鄭彥渊
@BrianTycangco
·
Apr 11 Great point here. Chinese products going to the US are either no longer profitable at 145% tariffs if exporters shoulder the tariff, and no longer profitable for importers if they have to shoulder them. So expect a lot of shortages in US stores in the next 4 to 8 weeks (possibly
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