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Association for Accessible Medicines Comments on New Tariffs

US tariffs on Canada, Mexico, and China could worsen drug shortages and increase costs

Quality Digest
Mon, 02/17/2025 - 12:02
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(Association for Accessible Medicines: Washington, DC) -- The Association for Accessible Medicines has commented on the proposed 25% tariff on imports from Canada and Mexico, as well as a 10% tariff on China.

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“The global supply chain for generic and biosimilar medicines is critically important for U.S. patients,” says John Murphy III, president and CEO of the AAM. “From the base ingredients to the finished products, U.S. medicines rely on a global supply chain that is already stressed and in need of strengthening. Tariffs on products from Canada, Mexico, and China could increase already problematic drug shortages.

“Generic manufacturers simply can’t absorb new costs. Our manufacturers sell at an extremely low price, sometimes at a loss, and are increasingly forced to exit markets where they are under water. The overall value of all generic sales in the U.S. has gone down by $6.4 billion in five years, despite growth in volume and new generic launches. Tariffs would make this much worse.

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Submitted by Chris (not verified) on Fri, 02/21/2025 - 12:06

Re-shore medicine API production

The pharma companies and politicians they financially supported over the past 3 decades sought after lower production costs (without comparable savings to patients) and outsourced all API production to foreign lands.   Now they complain about tariffs and supply problems rather than address the necessity to re-establish US-based manufacturing capacity.   You broke it, now fix it.  I dislike the higher costs, but hate that we are under the thumb of communist and people trafficking nations for medicines.

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