The "tariff Weapon" mentioned by Trump targets the Global supply chain of generic drugs.

According to CCTV News, the USA may impose tariffs on imported Pharmaceuticals. Trump has repeatedly stated that drugs could be included in the taxable range. This week, the USA Department of Commerce also announced the launch of an investigation to determine whether imported drugs constitute a "National Security risk." Although the process has a maximum duration of nine months, Secretary of Commerce Howard Lang raised the possibility that tariffs could be implemented in one to two months.

This has made the entire generic Pharmaceutical Industry begin to feel tense. It should be noted that generic drugs account for about 90% of the Pharmaceutical supply in the USA, and their profits are already extremely thin. If tariffs are actually added, some pharmaceutical companies may directly cease production. Media reports quote warnings from the generic Pharmaceutical Industry that imposing tariffs on drugs could lead to shortages of critical medications, including impacts across various treatment areas such as some cancer medications.

One additional tax could lead to losses.

First of all, generic drugs are not a high-profit industry.

These drugs are affordable alternatives after patents expire, with thin profits and facing fierce Global competition. Once tariffs are imposed, profit margins will be further compressed, and some pharmaceutical companies may choose not to produce them at all.

John Murphy, head of the American Association of Manufacturers of Generic Drugs (AAM), stated that increasing costs for an industry already struggling with capital investment is bound to be ineffective. If the profits from our current products barely cover costs, how will we raise funds in the future to shift production capacity?

Global supply chains: cannot be severed, nor replaced.

Even more serious is that these generic drugs, especially some Low Stock Price anti-cancer drugs and vaccines, are almost all produced overseas. Currently, most of the generic drugs in the USA are produced in India and Southeast Asia, making it difficult for the USA to be self-sufficient.

The British Generic Manufacturers Association (BGMA) has also issued a warning that due to intense competition in the Industry, current drug prices have been pushed to the limit. Tax increases will either raise drug prices or lead to a direct supply shortage.

India is the first to bear the brunt. As one of the largest generic drug exporters in the Global market, India accounts for 20% of Global generic drug exports and 60% of Low Stock Price vaccine supplies. The chairman of Indian generic pharmaceutical company Hetero has stated: "Tariffs will make our drugs more expensive in the USA, significantly eroding our market share."

Ultimately, the one that suffers the consequences is the USA itself.

Moreover, tariffs will ultimately backfire on the USA itself, increasing Consumer spending on drugs.

According to calculations by ING Bank, if a 25% tariff is imposed, the 24-week prescription cost of a generic cancer drug will rise by $8,000 to $10,000. The head of ING Global Pharmaceuticals and Medical stated that patients without insurance will be the first to suffer, and even those covered by insurance may face higher premiums.

Even more seriously, if losses continue to expand, some pharmaceutical companies will completely withdraw, potentially leading to more serious drug shortages. In fact, there were already signs of tight drug supplies in the USA. According to data from the American Society of Health-System Pharmacists (ASHP), drug shortages across the USA reached a historic high in the first quarter of last year, with a total of 323 types.

Editor/rice