How US tariffs could disrupt the generic drugs supply chain

Generic drugs run on thin margins and tight supply chains. Any disruption triggered by increased tariffs could raise prices, push some manufacturers out of the market and even worsen medicine shortages. Generic medicines – cheaper versions of branded drugs whose patents have expired – are the backbone of modern healthcare. They account for most prescriptions issued globally and are essential for treating a wide range of common and chronic conditions, from infections to cardiovascular diseases. But their affordability comes at a cost: generic manufacturers operate on razor-thin margins and rely on complex global supply chains, leaving them particularly vulnerable to external shocks. The introduction of new tariffs could reduce dependence on foreign suppliers by encouraging domestic production, but it’s a risky strategy – one that might drive up costs and potentially push some manufacturers out of key markets, experts warn. For the generics industry, tariffs could lead to ...