For many months, as President Trump signaled his intent to impose significant tariffs on imported medications, a growing wave of anxiety spread among American patients. The primary worries were twofold: potential surges in drug prices and the unsettling possibility of shortages for essential medicines.
While the full scope of the drug tariffs announced by Mr. Trump on Thursday evening is still being clarified, here’s an overview of the key details that have emerged.
Will Your Medicine Be Affected by These New Tariffs?
For the vast majority of prescription drugs used across the United States, the straightforward answer is no.
Specifically, older, more affordable generic drugs, which constitute approximately 90 percent of all prescriptions filled by Americans, will not be subject to any tariffs, a detail confirmed by a Trump administration official on Friday.
What About Brand-Name Medications?
If you are currently taking a brand-name drug that is manufactured in the European Union—a common origin for many such medications—it could soon face a tariff of up to 15 percent. The exact implementation date for this measure remains uncertain. It’s worth noting that some of the most recognized and widely used brand-name drugs are produced within the EU.
Conversely, if your medication is produced within the United States, which represents the second-largest manufacturing base for brand-name drugs, it is expected to be exempt from these new tariffs.
However, if your drug originates from certain other countries, it might soon be impacted by a substantial 100 percent tariff. Countries like Switzerland, Britain, Singapore, India, China, Canada, and Mexico are among those with drug manufacturing facilities that could potentially be affected. Nevertheless, these nations collectively contribute a relatively small proportion of the brand-name drugs consumed by Americans.
It’s also important to understand that simply because your drug is made in one of these locations doesn’t automatically mean it will incur a tariff. Companies may have opportunities to bypass these tariffs for products still being manufactured abroad if they can demonstrate to the Trump administration that they are actively planning to shift some of that production to new facilities under construction in the United States.
For instance, if a pharmaceutical company manufactures your heart medication in Ireland but is simultaneously developing a new factory in North Carolina for the same drug, a tariff might not be applied to that specific product.
Will the Cost of Your Medication Increase?
These tariffs could potentially lead to moderate price increases for specific brand-name drugs. Experts have expressed greater concern regarding possible price hikes for specialized, niche products from smaller pharmaceutical companies, rather than the industry’s major blockbuster medications.
Such increases could translate into higher out-of-pocket expenses for some American patients, particularly those whose insurance plans involve deductibles or require them to pay a percentage of the drug’s total price.
Nonetheless, existing contractual agreements and the prospect of significant financial penalties might dissuade manufacturers affected by these tariffs from implementing drastic price increases.
Will You Still Be Able to Access Your Medications?
Experts acknowledge the potential for supply chain disruptions, particularly for niche brand-name products from smaller drug companies that may lack the financial resources to relocate production to the United States. A smaller company suddenly hit by a 100 percent tariff could prompt a smaller company to withdraw from the U.S. market or sell off that particular product line. For patent-protected brand-name drugs, this scenario means there are no immediate generic alternatives from competitors.
However, there are no major concerns about shortages of the most widely prescribed brand-name drugs. Even if the manufacturers of these popular medications temporarily face high tariffs, their substantial profit margins provide a strong incentive to ensure continuous availability.
How Can You Determine Where Your Drug is Manufactured?
The packaging of your medication might indicate the location where a crucial stage of its manufacturing process took place. Additionally, the federal government provides a convenient online search tool that can offer some insights.
However, the information provided on packaging 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 particular manufacturing stage occurred there. Furthermore, the label typically won’t disclose the origin of the raw materials used.
For more detailed information, you can also consult Food and Drug Administration documents online, which provide insights into the facilities involved in a drug’s production, especially during its approval phase. Be aware, though, that these files can often be challenging to navigate.
Ana Swanson contributed to this report.