President Trump’s tariffs in China are in place and hitting all products imported from the country — including a number of pharmaceutical drugs that Americans rely upon.
Chinese imports account for a significant proportion of U.S. prescriptions and over the counter drugs. Many of the Chinese-produced drugs are generics, which account for 91 percent of prescriptions dispensed in the U.S.
“The Chinese market is a key supplier for key starting materials and [Active Pharmaceutical Ingredient (API)] to the generic supply chain,” said John Murphy, president and CEO of the Association for Accessible Medicines (AAM).
Tariffs may cause shortages, industry exits
The margins for manufacturing generic drugs are razor-thin, and any disruptions to the supply chain are apt to cause shortages or delays.
“That additional 10 percent tariff is going to have a fairly significant impact on the cost of goods for the generic and by a similar supply chain,” said Murphy. “We don’t hold massive stockpiles of generic drugs in the United States. It’s a fairly just-in-time inventory.”
According to Murphy, some manufacturers may find it economically unviable to produce generic drugs, resulting in shortages.
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Chinese imports account for a significant proportion of U.S. prescriptions and over the counter drugs. Many of the Chinese-produced drugs are generics, which account for 91 percent of prescriptions dispensed in the U.S.
“The Chinese market is a key supplier for key starting materials and [Active Pharmaceutical Ingredient (API)] to the generic supply chain,” said John Murphy, president and CEO of the Association for Accessible Medicines (AAM).
Tariffs may cause shortages, industry exits
The margins for manufacturing generic drugs are razor-thin, and any disruptions to the supply chain are apt to cause shortages or delays.
“That additional 10 percent tariff is going to have a fairly significant impact on the cost of goods for the generic and by a similar supply chain,” said Murphy. “We don’t hold massive stockpiles of generic drugs in the United States. It’s a fairly just-in-time inventory.”
According to Murphy, some manufacturers may find it economically unviable to produce generic drugs, resulting in shortages.
Complete Article