Tariff uncertainty threatens to raise drug prices and stall medical innovation, experts warn
Share this @internewscast.com

LOS ANGELES (KABC) — In this time of fluctuating tariff talks, many are concerned and confused about what it will cost us.

President Donald Trump put most of them on hold for now, but when it comes to paying for medications, tariffs could have some long-term consequences.

At various pharmacies, customer uncertainty is bringing worry especially for those already spending more than they can afford.

“One inhaler is $60 to $100 in order for me to get a breathing treatment,” said Lucky Goodrich of Los Angeles.

“Of course we get lots of calls, lots of inquiries and people want to know what’s going on,” said Sherri Cherman of Elements Pharmacy in Studio City.

Trump says he believes tariffs would drive drug makers to open manufacturing plants in the U.S., which would ultimately lower costs for Americans and create more jobs. Economists said the industry doesn’t work that way.

“It’s just completely different,” said Bill Padula, a scholar with the USC Schaeffer Center for Health Policy and Economics.

He said unlike other products, pharmaceutical prices are locked in with insurance companies at the start of every year.

“What pharmaceutical manufacturers may be in the position of is having to lower their price so that the price plus the tariff equals what health insurers will continue to expect as the cost of things,” he said.

The result is that drug companies will take the hit first.

But down the line, industry trade group Pharmaceutical Research and Manufacturers of America, estimated a proposed 25% tariff would boost drug prices by as much as 12.9%.

Experts say the raw ingredients for almost all medications are manufactured overseas, which means it could drive up cost even for drugs manufactured in the U.S.

“Even if there’s a 25% tariff on the drug itself being imported, the increased tariffs on active or raw ingredients that go into a drug could increase the total cost by 40%,” Padula said.

He added another potential consequence of drug makers making less profit means less money toward research and development for breakthrough treatments for cancer, Alzheimer’s and other diseases.

“So in the long run, Americans could pay by not having the availability of new innovative medications,” Padula said.

Is there a better solution? Padula said tax credits for drug makers have worked before. One example is the 1980s Orphan Drug Act which he said helped reduce costs and incentivize innovation.

“We saw instantaneous responses from the pharmaceutical industry trying to find ways to take existing drugs and create new indications for them,” he said.

But tax credit legislation on a federal level takes a very long time to pass, so Padula said local action would be faster.

“These credits could be deployed at the state level and incentivize manufacturers coming back to certain states,” Padula said.

At the cash register, Cherman said worry has prompted some customers to get as many prescriptions filled as possible, but she tells her customers change will be slow.

“I feel like there’s going to be a lot of negotiation between the drug industry and the government before we finally see what might happen,” she said.

Copyright © 2025 KABC Television, LLC. All rights reserved.

Share this @internewscast.com
You May Also Like
Chris Brown arrested in London for nightclub bottle attack

Chris Brown Detained in London Over Nightclub Bottle Incident

A producer with a British tabloid said Brown cracked him on the…
Stars hit the red carpet for 32nd-annual Race to Erase MS Gala to help find a cure for multiple sclerosis

Celebrities Attend the 32nd Annual Race to Erase MS Gala to Support Multiple Sclerosis Research

CENTURY CITY, LOS ANGELES (KABC) — A significant event took place in…
Hiplet Ballerinas to perform one night only at Auditorium Theatre in Chicago Loop

Hiplet Ballerinas Set for Exclusive One-Night Performance at Chicago’s Auditorium Theatre

CHICAGO (WLS) — Chicago’s own Hiplet Ballerinas will perform “Dipped in Versatility”…
Trump’s Middle East trip handed Israel a historic opportunity — if it chooses to act, experts say

Trump’s Middle East Visit Offers Israel a Unique Opportunity for Action, Experts Suggest

TEL AVIV – As President Donald Trump concluded his crucial tour of…
2 dead and at least 3 injured in Las Vegas gym shooting, police say

Las Vegas Gym Shooting Results in 2 Fatalities and Multiple Injuries, According to Police

A shooting at a gym in Las Vegas on Friday afternoon resulted…
2 dead and others injured in Las Vegas gym shooting, police say

Tragic Las Vegas Gym Incident Leaves 2 Dead, Multiple Injured

LAS VEGAS (AP) — There was a shooting Friday afternoon inside a…
Eurovision 2025: Who will win Europe's pop crown?

Who will claim the pop crown at Eurovision 2025?

No smoke machine, jet of flame or dizzying light display has been…
Josh Hart snags first Knicks' triple double in playoffs since 1972

Josh Hart Secures Knicks’ First Playoff Triple-Double Since 1972

Josh Hart entered his name into Knicks playoff lore Friday night. The…
‘Bridgerton’ Renewed For Seasons 5 and 6 by Netflix, Season 4 Eyes 2026 Release Date

Netflix Confirms ‘Bridgerton’ Renewed for Seasons 5 and 6, Season 4 Planned for 2026 Release

Dear readers, ready your fans and fainting couches — the ton’s scandal…
Carlos Rodon finds way to keep Mets in check in hard-fought outing

Carlos Rodon Manages to Hold Mets at Bay in a Tough Game

As all eyes were on Juan Soto throughout Friday’s 6-2 win by…
Nighttime view of the Chernobyl nuclear power plant's fourth power unit.

Concerns Over Potential Radiation Disaster as Engineers Hurry to Fix Damage to Chernobyl Dome from Recent Attacks

A RUSSIAN drone collided with Chernobyl’s protective dome, heightening concerns that another…
Here's what to do if your car was damaged in the JAX airport parking garage fire

Steps to Take if Your Car Was Damaged in the JAX Airport Parking Garage Fire

The Jacksonville Aviation Authority advised travelers to visit the airport’s website and…