Overview

• Johnson & Johnson estimates $400 million in tariff-related costs for 2025, primarily from tariffs on goods from China, Canada, Mexico, and raw materials like aluminum and steel.
• The Trump administration has launched a national security investigation into pharmaceutical imports, potentially paving the way for new tariffs on drugs, further impacting the industry.
• Experts warn that generic drug manufacturers, already operating on thin margins, could face severe financial strain, risking supply chain disruptions and drug shortages.
• Johnson & Johnson continues its $55 billion investment in domestic manufacturing, aiming to produce all U.S.-used advanced medicines domestically within four years.
• While health insurers are mitigating immediate patient cost increases, experts predict potential long-term impacts, including higher drug prices and cuts to research and development budgets.