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    Home - Global - Americans Face Rising Drug Costs If Pharma Tariffs Are Imposed, Warn Experts
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    Americans Face Rising Drug Costs If Pharma Tariffs Are Imposed, Warn Experts

    By vikasNo Comments2 Mins ReadMay 5, 2025
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    Americans Face Rising Drug Costs If Pharma Tariffs Are Imposed
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    The imposition of tariffs on pharmaceutical imports could result in increased drug expenses for Americans according to industry professionals. The current strain on global supply chains might result in medication costs becoming unaffordable for numerous people.

    The generic drug manufacturer Sandoz along with other companies warn that pharmaceutical tariffs will elevate production expenses and disrupt medication distribution. “Our margins are tight. The rise in costs will result in price increases according to Sandoz representative Giovanni Barbella. The US market could lose pharmaceutical companies that choose to operate in regions with higher profit margins thus creating more severe supply shortages.

    The EY research indicates that a 25% US pharma tariff would increase drug costs by $51bn annually and prices by nearly 13%. The US insurance-based healthcare system puts vulnerable patients at risk of receiving incomplete treatments when drug prices surge.

    Major pharmaceutical companies are investing substantial funds in the US to reduce the threat of drug price increases. Roche has announced $50bn in investments while Novartis plans $23bn and AstraZeneca has allocated $3.5bn and Eli Lilly will invest more than $27bn. The European manufacturing exposure of Johnson & Johnson has led the company to invest $55 billion in domestic operations.

    The production of generic drugs encounters significant challenges because most of these products originate outside the United States. Sandoz operates its antibiotic production facilities in Europe while obtaining essential ingredients from China and India. The interruption of these supply routes could result in severe outcomes.

    Americans Pharma Tariffs Rising Drug Costs
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