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Key Takeaways
- The cost of cancer treatment could increase if President Donald Trump’s proposal to increase tariffs on pharmaceutical imports by 25% is implemented.
- Certain cancer treatments could go up by $8,000 to $10,000 for a 24-week course under Trump's trade policies, one analysis found.
- Drugs are just one of the products that could see serious price increases after Trump's tariffs go into effect.
New analysis shows that President Donald Trump’s proposed tariffs may increase the price of some cancer treatments up to $10,000. They could also raise prices for cheaper everyday medications, according to a new study.
Diederik Stig, an economist with ING Bank, has found that Trump’s proposed Tariffs could cause the cost of some cancer treatments to increase by $8,000-$10,000 for a 24 week course. The average cost of generics would rise from 82 to 94 cents. The cost of generic drugs would rise to 94 cents per pill on average, up from 82 cents.
Stadig said that the health insurance premiums would increase if this 25% tariff were implemented.
Stadig stated that various Trump tariff proposals may increase drug prices. Trump has proposed a tariff of 25% against the European Union – a major manufacturer of drugs – a tariff of 25% against countries that import Venezuelan oil, which includes India, a drug exporter – and a tariff 25% against all imported pharmaceuticals.
Stadig said that the initial impact could be significant for both patients and U.S. healthcare system.
How Pharmaceutical Companies Respond Matters
Drugs are among many products whose prices could soar under the tariff campaign Trump has announced or promised in recent weeks as he makes sweeping changes to U.S. trade policy.
The longer-term effects of the higher prices are harder to predict. Some companies might choose to relocate more manufacturing to the U.S. to get around the tariffs—the intended effect—but Stadig noted that building a new drug factory can cost billions of dollars and take up to 10 years. He wrote that companies may be reluctant to commit due to the uncertainty about how long tariffs will remain in place and what will happen once Trump’s tenure in office ends.
Some of the more expensive, specialty drugs could move production to America relatively quickly. These prices may be higher permanently due to the labor costs and other expenses in America compared to India. Stadig predicted generics makers would choose India to pay the tariffs and remain there.
