The Hidden Cost of Tariffs on Pharmaceuticals: Prescription for a Disaster

Written by Lena Petrova on April 20, 2025. Posted in Current News

Let’s examine a critical topic that affects all of us: the Trump administration’s push to impose tariffs on pharmaceutical imports.

While this move may sound like just another policy headline, it could have serious consequences for millions of Americans, especially those already struggling to afford healthcare (unfortunately, there are millions of them!).

America’s Dependence on Imported Pharmaceuticals

The United States is the world’s largest importer of pharmaceutical products. In 2024 alone, the country imported around $214 billion worth of drugs and related products, while exporting only $95 billion, leaving us with a hefty $119 billion trade deficit in this sector.

But here’s what’s important: the U.S. doesn’t just import finished drugs. We also rely on foreign sources for active pharmaceutical ingredients (APIs)—the core compounds used in drug manufacturing. While about 54% of these were produced domestically in 2019, the rest came from countries like Ireland, China, India, and Germany.

This means that even “Made in America” medications still depend on global supply chains—and tariffs could disrupt the entire system.

Generic Drugs Are Especially at Risk

Generic medications, often more affordable than brand-name drugs, are particularly vulnerable. China, for example, supplies 95% of U.S. ibuprofen imports, 91% of hydrocortisone, and up to 45% of penicillin. The U.S. doesn’t currently have the manufacturing capacity to replace these imports at scale.

If tariffs are imposed, prices on everyday drugs—from antibiotics to over-the-counter painkillers—could skyrocket, leaving consumers with no choice but to pay more or go without.

A Broken System on the Brink

Let’s not forget: the U.S. healthcare system is already broken (I will share more detailed posts on this in the near future).

According to the Commonwealth Fund, America ranks last among 10 high-income nations when it comes to healthcare access, outcomes, and equity. Despite spending 16% of its GDP on healthcare, the U.S. continues to fall short.

Here’s a snapshot:

• 26 million Americans remain uninsured.
• 1 in 4 working-age adults are underinsured.
• Over 40% of Americans spent $1,000 or more out-of-pocket on healthcare last year.
• Life expectancy is just 77.5 years—lower than many peer nations, and even comparable to Iran.

Now add tariffs on life-saving medicines? It’s a recipe for disaster.

Watch the latest video where I share more details on the subject, available on YouTube and Rumble:

See more here worldaffairsincontext.com

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