Trump Readies Major Pharmaceutical Tariffs to Reshore Drug Production

Experts warn of potential drug shortages, higher costs, and limited reshoring impact as Trump's tariff plan targets global pharmaceutical supply chains.

• President Trump has announced plans to impose significant tariffs on pharmaceutical imports, aiming to shift drug production back to the United States.
• Industry experts caution that relocating pharmaceutical manufacturing is a lengthy process due to regulatory hurdles and high construction costs, making immediate reshoring unlikely.
• The proposed tariffs are expected to disrupt global supply chains, with generic drug manufacturers particularly vulnerable to cost pressures and potential market exits.
• Rising production costs, compounded by overlapping tariffs on materials like steel, could lead to higher drug prices for patients and exacerbate existing shortages in critical medications.
• Pharmaceutical companies may absorb tariff costs by cutting research and development budgets, potentially stalling innovation in the sector.

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