Undeniably, President elect Donald Trump won the 2024 Presidential Election under the premise of rebuilding a strong American economy. His views on immigration, international wars and foreign policy at large all tied back into his economic platform, and to his favor, produced a strong base to run on.
Trump tariffs would impose taxes on imports from foreign countries, notably Mexico, Canada and China. The theory is as follows: by threatening high tariffs on imported goods from American competitors or bordering countries, America could compel foreign states to abide by American demands, notably surrounding border policy. Specifically in Canada and Mexico, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum would have to follow Trump’s demands to enforce stricter border policy to prevent “illegal immigrants and drugs” from entering the country in order to avoid high tariffs.
Despite the disillusion that these taxes would benefit the economy, Trump’s tariffs, if imposed, would accompany a series of consequences for American consumers. Specifically, Trump tariffs would spike the cost of generic drugs in the United States. With half of all generic drugs and 80% of all active pharmaceutical ingredients (APIs) manufactured overseas, Americans already burdened by the growing cost of healthcare would receive another surge in prices. It’s also important to note that tariffs do not automatically mean that foreign countries will pay up. Trump tariffs would increasingly defer trade opportunities, potentially leading to drug shortages in America, where generic drugs makeup for around 90% of prescriptions.
Trump has yet to comment on the impact of these tariffs on generic drugs prices and if he would make an exception for an industry heavily reliant on imports from foreign manufacturers. At the end of the day, voters must remember that Trump’s campaign also promised to “fix” the economy and make prices for Americans affordable. However, these tariffs will do anything but that. Between January 2022 and January 2023, drug prices saw an increase on average of 15.2%. With Trump’s new tariffs, this trend will only continue. In Trump’s economy, the rich will get richer, while the American consumer continues to suffer.
sglisson@ramapo.edu
Featured photo courtesy of @Kevin-Bidwell, Pexels
