Tariffs on China threaten could drive up drug costs, exacerbate shortages: 5 notes

Becker's Healthcare February 4, 2025
Alexandra Murphy

The recent imposition of a 10% tariff on Chinese imports is expected to raise the cost of generic drugs in the U.S. and worsen ongoing drug shortages, NBC News reported Feb. 3.

Here are five more notes:

1. China plays a significant role in the production of active pharmaceutical ingredients, the building blocks of most drugs, with about 80% of APIs used in U.S. medications coming from overseas. In 2023, China operated 219 API facilities, up from 134 in 2021.
2. Many of the generic drugs Americans rely on — including antibiotics, cancer treatments and blood thinners — are manufactured overseas, where labor and production costs are lower. Since generics account for 90% of prescriptions in the U.S.,...

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