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US tariffs jeopardize medicine supply chains | Science
In April, the Trump administration announced sweeping tariffs on key trade partners, and it is poised to include pharmaceuticals next (1). Tariffs increase input costs for domestic drug manufacturers, particularly producers of generic medications, who operate on thin margins (2, 3). Moreover, because the US produces only a fraction of the generic medications that it needs (4), such drugs could serve as a cheap yet potent geopolitical tool for retaliation. Rather than expanding tariffs to pharmaceuticals, the US should build resilience in its medicine supply chains through targeted investments and international coordination.
In April, the Trump administration announced sweeping tariffs on key trade partners, and it is poised to include pharmaceuticals next (1). Tariffs increase input costs for domestic drug manufacturers, particularly producers of generic medications, who operate on thin margins (2, 3). Moreover, because the US produces only a fraction of the generic medications that it needs (4), such drugs could serve as a cheap yet potent geopolitical tool for retaliation. Rather than expanding tariffs to pharmaceuticals, the US should build resilience in its medicine supply chains through targeted investments and international coordination.
