To date, the Trump Administration has mostly excluded prescription drugs from tariffs. However in August, President Trump proposed a “small” initial tariff on pharmaceuticals, to rise to 150% within 18 months before jumping to 250% according to Reuters.
How will Trump’s tariffs impact prescription drugs in the U.S.? Let’s find out.
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Higher Prices on Generic Drugs
Developing countries produce most generic drugs sold in the U.S., as the prices and margins remain low. “Generic medications are likely to see the greatest increase in cost, compared to brand name medications, given most generics are imported from outside the U.S.,” explained Whitney Stidom, president of consumer enablement at eHealth.
In fact, an August survey by Sermo asked participants, who were physicians, whether they had already seen the effects of tariffs on medical supplies, drugs, or equipment in their work. Worryingly, only 21% of the over 800 physicians surveyed said “No.”
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Even More Expensive Branded Drugs
If you’ve ever bought medications overseas, you know how much more Americans pay than anyone else in the world.
Dr. Mariana Socal, professor at Johns Hopkins, put it succinctly in a 2025 media briefing. “Today, the United States pays on average three to four times higher prices than other developed countries around the world for the same branded drugs,” she said. That will only get worse if the current administration layers tariffs on pharmaceuticals.
Many doctors worry that patients won’t be able to afford the treatments they need. The Sermo survey found that 32% of doctors expect patients to delay or forego treatments due to higher costs from tariffs.
Higher Insurance Costs
In the beginning, the higher cost of prescription medications typically hit insurers first. “Most consumers wouldn’t see immediate price hikes at the pharmacy counter, since manufacturers and insurers would typically absorb those increases due to existing price agreements,” explained Michael Grosberg, pharmaceutical expert at Model N.
But like importers, don’t expect businesses to just roll over and accept lower profit margins. “Over time, patients would feel the impact as insurers and public programs offset higher spending through increased premiums or adjustments to coverage,” Grosberg added.
In fact, eHealth found that Medicare Part D prescription drug premiums already rose 24% from 2024 to 2025 — a trend only likely to worsen with pharmaceutical tariffs.
Potential Reshoring of Pharmaceuticals
Some experts do see a possible positive impact of tariffs on pharmaceuticals. William Soliman, CEO at the Accreditation Council for Medical Affairs, acknowledged that tariffs will increase prescription drug costs because most of the active pharmaceutical ingredients are made overseas. But he sees it as a price worth paying, due to quality concerns in overseas drug manufacturing.
“Long term it will encourage more domestic manufacturing, which I think could be a positive to ensure that our drugs are manufactured with the highest quality standards,” Soliman added.
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This article originally appeared on GOBankingRates.com: Will Trump’s Tariffs Spike Your Cost for Prescription Meds? Experts Weigh In
