If you’re wondering whether the Trump tariffs will affect the cost of generic prescription drugs, the answer is no, Rebecca Robbins reports for The New York Times. And, the better new is that 90 percent of prescriptions Americans take are generic.
Of course, if your brand-name drug is manufactured in the United States, the Trump tariffs will not apply to it. But, if you take a brand-name drug that is made in the European Union, the Trump tariffs could raise its cost by as much as 15 percent, when it takes effect. As of now, we don’t know when that will be.
The cost of your brand-name drug could rise significantly if it is manufactured in one of the countries where Trump’s tariffs are currently set at 100 percent. Countries with high tariffs include, China, Canada, Mexico, India, Britain, Switzerland, Singapore. Fortunately, most brand-name drugs are not manufactured in these countries. (But, as of today, Trump is delaying these tariffs, reports StatNews.)
And, note: If companies manufacturing drugs in countries with tariffs let the Trump administration know they plan to move manufacturing to the United States, they might avoid the tariffs. Also, some drug manufacturers have agreed not to raise prices significantly and/or could face big penalties if they do.
Drug shortages for most brand-name drugs are unlikely. Pharmaceutical companies will find a way to continue to profit handsomely from them, even if it means paying the tariffs. But, some brand-name products might no longer be available as a result of the tariffs. Small pharmaceutical companies might not be able to manage their businesses with a 100 percent tariff and could close down. They might not be able to produce its drugs in the United States.
If you want to figure out where your drug is manufactured, the government offers a search tool. Click on this link to the tool.
Here’s more from Just Care:
- Insurers overcharge Medicare enrollees for generic drugs
- Case study: Costco saves one couple hundreds of dollars over Medicare Part D
- Online pharmacies can save you money
- UnitedHealth will cut Medicare Advantage plans covering 600,000 enrollees at the end of 2025
- Medicare Open Enrollment: Consider changing health plans
