STAT+: Trump’s proposed tariffs may cause shortages of Canadian-made drugs in the U.S., analysis finds
President Trump's threatened tariffs on Canadian drugs could lead to another $750 million in costs for Americans, according to a new analysis.
The tariffs being proposed by the Trump administration on pharmaceuticals may cause shortages and raise prices for numerous medicines that are made in Canada and sold in the U.S., a new analysis suggested.
An estimated $3 billion in pharmaceuticals sold in the U.S. each year are produced, at least in part, in Canadian manufacturing facilities, and if President Trump proceeds with reported plans to impose 25% tariffs, this would lead to another $750 million in costs for Americans, according to the analysis, published in JAMA.
“I think we are all guessing on most of this since the pricing can’t be nimble like other consumer products,” said Mina Tadrous, the lead author and a University of Toronto assistant professor. “These costs would likely be passed down the chain. Initially, I think the companies and wholesalers will try to take it on, but these will likely be passed on to the payers and consumers as time goes on.”
