Marketplace Morning Report Could tariffs help reshore US drug manufacturing?
Jul 21, 2025
The discussion highlights President Trump's push to reshore drug manufacturing in the U.S. through potential tariffs on imported medications. Experts weigh in on the heavy reliance on foreign generics and the risks involved. Additionally, the impact of tariffs on the financial dynamics of the drug industry is examined, revealing contrasting perspectives on their benefits and drawbacks. The podcast also touches on significant oil discoveries in Guyana and the recent resignation of a key regulatory figure in accounting.
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U.S. Dependence on Imported Drugs
- Most U.S. medications rely on imports, with branded drugs primarily made in Europe and generics mostly in India and China.
- This foreign dependence creates risks for U.S. drug supply stability during international trade disruptions.
Challenges in Reshoring Drug Production
- Building domestic drug manufacturing capacity in the U.S. is costly and complex.
- Firms hesitate to invest without consistent policies, and tariffs alone may be too unstable to encourage reshoring.
Use Tariffs Strategically
- Tariffs on imported generics could backfire by pushing companies away from the U.S. market.
- Policymakers should use tariffs strategically and combine them with broader interventions to protect drug supply.