AAM Warns of Potential Impact of Tariffs on Global Supply Chain for Generic Medicines

The Association for Accessible Medicines (AAM) recently commented on the announcement that a 25% tariff will be imposed on Canada and Mexico as well as a 10% tariff on China.

“The global supply chain for generic and biosimilar medicines is critically important for U.S. patients. From the base ingredients to the finished products, U.S. medicines rely on a global supply chain that is already stressed and in need of strengthening.” said John Murphy III, president and CEO of the Association for Accessible Medicines. “Tariffs on products from Canada, Mexico, and China could increase already problematic drug shortages.”

The statement added that generic manufactures cannot absorb new costs. Americans pay less for generics than practically anywhere else in the world yet are facing the growing challenges of shortages of drugs.

“The previous Trump Administration opted not to impose tariffs on generic and biosimilar manufactures,” the comment added. “AAM and its members urge the Administration to follow their past practice and work with our industry on constructive policies and regulatory reforms that will bolster the resiliency and vibrancy of this critical healthcare market to the benefit of the American economy, lower overall healthcare costs, and keeping America’s patients healthy.”