For several months, President Trump’s threats of steep tariffs on imported medicines have sparked concerns about potential price hikes and shortages of crucial drugs for American patients.
While the full scope of the drug tariffs announced on Thursday night is still unfolding, here’s a breakdown of what we understand so far.
Will these new tariffs apply to my medicine?
For most prescription drugs used in the United States, the answer is no.
Affordable, older generic drugs, which make up about 90% of all prescriptions filled by Americans, will not be subject to these tariffs. A Trump administration official confirmed this on Friday.
What about brand-name medications?
If your brand-name drug is manufactured in the European Union, which is common for many such medications, it could soon face a tariff of up to 15 percent. The exact implementation date remains unclear. Many widely used and well-known brand-name drugs are produced within the E.U. bloc.
However, if your medication is made in the United States, which is the second most common manufacturing location for brand-name drugs, it should not be impacted by these new tariffs.
Drugs produced in certain other countries might soon be hit with a hefty 100 percent tariff. This could potentially affect manufacturing in nations like Switzerland, Britain, Singapore, India, China, Canada, and Mexico. However, these countries collectively produce a relatively small portion of brand-name drugs for American consumers.
It’s also important to note that a drug being made in one of these locations doesn’t automatically mean it will be subject to a tariff. Companies might be able to avoid these tariffs for products still manufactured overseas if they can demonstrate to the Trump administration that they plan to shift some of that production to new factories being built in the United States.
For instance, if your heart disease medication is currently made in Ireland, but the company is constructing a new factory in North Carolina to produce that same drug, it might be exempt from the new tariff.
Will the cost of my medication increase?
These tariffs could lead to moderate price increases for specific brand-name drugs. Experts are more concerned about price hikes for niche products from smaller drug companies rather than the pharmaceutical industry’s major blockbuster medications.
For some Americans, particularly those whose insurance plans require them to pay a deductible or a percentage of a drug’s cost, this could translate to higher out-of-pocket expenses.
Nevertheless, existing contractual agreements and the risk of substantial financial penalties might prevent manufacturers affected by tariffs from drastically increasing prices.
Will I still be able to get my medication?
Experts anticipate potential supply disruptions for some specialized brand-name products, particularly those from smaller pharmaceutical companies that may not have the resources to relocate production to the United States. A smaller company suddenly facing a 100 percent tariff might opt to withdraw from the U.S. market or sell off that product line. For patent-protected brand-name drugs, there are no immediate alternatives from competitors.
However, concerns about shortages of the most popular brand-name drugs are minimal. Even if their manufacturers temporarily incur significant tariffs, their substantial profit margins provide strong incentives to ensure these products remain widely available.
How can I find out where my medicine is manufactured?
Your drug’s packaging might indicate where a crucial stage of its manufacturing process took place. While there isn’t a direct link I can provide here, the federal government typically offers a search tool for such information.
However, packaging details can sometimes be incomplete. It might only list the location of a company’s corporate offices, or state that a drug is made in India without specifying which part of the manufacturing process occurred there. The label also generally won’t reveal the origin of the raw materials.
You can also search for Food and Drug Administration documents online for more in-depth information on the facilities involved in a drug’s production, especially during its approval phase. Be aware that these files can often be complex and challenging to navigate.
Ana Swanson also contributed to this report.