This is Why US Healthcare Will be UNAFFORDABLE (Uncut) 04-15-2025

CRISIS AHEAD: This is Why US Healthcare Will be UNAFFORDABLE Due to New Tariffs on Pharmaceuticals

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The current administration just announced that it is moving forward with plans to impose tariffs on pharmaceutical imports. This move will, without a doubt, escalate the trade war and pose new threats to millions of Americans who already find the cost of US healthcare to be completely unaffordable. While US healthcare is the most expensive in the world, health outcomes here in the US are actually lagging, and I want to share with you several shocking details in just a second.

First, let’s turn to proposed tariffs on pharmaceuticals, we’ll cover the basics, and then we’ll cover the state of US healthcare today. So the United States relies heavily on pharmaceutical imports, with these imports accounting for a significant portion of the nation’s pharmaceutical expenditures. For example, in 2024, the United States imported approximately $214 billion worth of pharmaceutical products, making the United States the largest importer globally.

In contrast, exports were around $95 billion, resulting in a significant trade deficit of about $119 billion in the pharmaceutical sector alone. The United States imports finished pharmaceuticals as well as active pharmaceutical ingredients that are used for domestic production. Therefore, to produce anything domestically, the United States still must have sound trade policies in place and healthy relations with importers.

It is a must. In 2019, for example, the United States produced 54% of the active pharmaceutical ingredients or APIs used domestically, quite a significant amount, with Ireland providing 19%, China providing only 6%, and other countries like Singapore, the UK, Switzerland, Belgium, India, Germany, France, Italy, the Netherlands, Spain, South Korea, and Argentina contributing smaller percentages. So, in terms of US importers of active pharmaceutical ingredients, it is an exaggeration to say that our national security is threatened because we import a portion, less than a half, of the ingredients from other nations.

Generic drugs are mostly imported from other countries, it is absolutely true. For example, China accounts for 95% of ibuprofen imports, 91% of hydrocortisone, and 40-45% of penicillin. The United States does not have industrial capacity at this time to replace these imports, which are going to now bear heavy duties with products that are manufactured here domestically.

So there is really no way around facing higher prices as soon as tariffs are imposed by the Trump administration. By imposing tariffs on these pharmaceuticals, the government puts patients, US consumers, in a position where they will have no choice but to pay even higher prices for prescription, even antibiotics, for example, and, of course, over-the-counter medicine. Before I share with you how tariffs on pharmaceuticals will harm US healthcare system, let me just share with you quick facts that are quite shocking so that we understand just how broken the healthcare system in the United States already is.

The US healthcare system continues to lag far behind other high-income countries. An analysis by the Commonwealth Fund shows 10 nations, including Australia, Canada, the UK, the United States, and others were compared on healthcare system aspects such as access, care process, administrative efficiency, equity, and health outcomes. The US showed the worst overall performance despite spending more per capita on healthcare than any other nation in the group.

The United States ranked lowest in both accessibility and healthcare outcomes, with 26 million Americans having no insurance whatsoever and a quarter of the working-age population being completely uninsured and therefore unable to afford healthcare procedures. At 77 and a half years old, US life expectancy is over four years below the 10-country average, the same as sanctioned, riddled Iran, by the way. Add to this tariffs on pharmaceuticals and, at the same time, add tariffs on bare necessities, which of course increases the cost of living here in the United States, and what you’ll have as a result, you’ll have people barely surviving trying to make ends meet as they are unable to pay for their medical appointments and medical procedures.

Imposing tariffs on pharmaceutical imports can lead to higher drug costs for US consumers through several mechanisms. In this video, I will share four ways that you need to be aware of. Number one are increased production costs.

Many generic medications rely on active pharmaceutical ingredients, APIs, that are sourced from countries like China and India, where production costs are lower than they are here in the United States. So tariffs on these imports can raise the cost of APIs, leading manufacturers to either absorb the additional expenses, potentially reducing their profit margins, which will of course make them want to scale back their production, or alternatively, they will pass those additional costs to consumers through higher drug prices. There is really no way around that.

The second mechanism that you will want to be aware of once these tariffs are imposed is reduced competition. Higher costs due to tariffs may force some generic drug manufacturers to exit the market, especially those that are operating on thin profit margins. And so that reduction in competition will in turn limit consumer choices and allow remaining suppliers to increase prices.

You may ask, well, why would they increase prices? Well, they would increase prices because they know that now that you, a consumer, have fewer options, you will have no choice but to purchase whatever it is that you need to improve your health from them. Therefore, they can raise prices as demand remains stable or increases. Now the third mechanism to be aware of is, of course, supply chain disruption.

The global pharmaceutical supply chain is extremely intricate, with many medications involving components manufactured across various countries. So tariffs can disrupt these supply chains, leading to shortages of certain medications. Such shortages can drive up prices due to decreased availability and sustained demand.

And lastly, number four, delayed market entry for generics. Once you hear that 95% of US generic drugs are produced in China or India, well, some of you may ask, well, why can’t we just produce them at home? Well, it is because it takes time for the process to get established, for the infrastructure to be created, and for all the licenses and regulatory hurdles to be overcome. Tariffs can delay the introduction of generic drugs into the US market, as manufacturers may face increased costs and regulatory hurdles.

So without timely access to generics, consumers may have to rely on more expensive, if they can afford them, brand name medications. And as we know, many people simply will not be able to afford those brand names. In summary, implementing tariffs on pharmaceutical imports can lead to higher drug prices for US consumers by increasing production costs, by reducing competition, and of course, disrupting supply chains.

It may also delay the availability of generic alternatives, which may lead to really, really tragic outcomes. Now comment below and let us know if you support imposing tariffs on pharmaceuticals without having alternatives here domestically. And remember to let us know why or why not.

So I would love to hear your thoughts on this. I know this may be a controversial subject. As always, thank you very much for watching.

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