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Drug companies are raising alarms about President Donald Trump's plan to impose steep import tariffs on pharmaceuticals, warning it could lead to higher prices and medicine shortages in the United States.

The proposed tariffs — as high as 200% on imported drugs — would mark a major change from past US trade policies, where most medicines entered the country duty-free.

Trump says the plan will bring pharmaceutical production back to the US, but experts believe it could hurt patients first.

"This is an industry that's going from zero tariffs to the potential of 200%," said Maytee Pereira of consulting firm PwC. "Shock and awe" is how she described the impact.

Economists and analysts warn that if the tariffs go through, it could disrupt supply chains and push out low-cost generic drugmakers.

According to AP News, Generic drugs make up about 92% of US prescriptions. Many are made in India or use ingredients from China.

Jacob Jensen, a trade analyst, said nearly all antibiotics and antivirals used in the US rely on at least one foreign-made ingredient.

"The only way to truly protect yourself from the tariffs would be to build the supply chain end to end in the United States," Pereira added.

Trump's Drug Tariff Plan May Hit Low-Income and Elderly the Hardest

Even a lower tariff of 25% could raise drug prices by 10–14% over time, according to healthcare economist Diederik Stadig. He noted that lower-income families and older Americans would be the most affected.

Trump has said the tariffs might be delayed by up to 18 months, giving companies time to adjust. Analysts say many drugmakers are already stockpiling products in anticipation.

Companies like Roche and Johnson & Johnson have promised large US investments. J&J says it plans to supply all its US drugs from within the country, ET said.

But building new factories can take years and cost billions — and that won't solve the issue of imported ingredients.

Some drugmakers may simply leave the US market rather than absorb the new costs, especially those making low-margin generics.

That could lead to gaps in care. A recent factory shutdown in India caused a chemotherapy drug shortage, highlighting how fragile the system can be.

The Biden administration used similar trade tools for medical supplies during COVID-19, but many experts say tariffs alone won't fix the problem.

"In an ideal world, we'd make everything here," said Marta Wosińska from the Brookings Institution. "But that's expensive. The question is, how much are we willing to spend?"

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