• Trump's first day in office on January 20 included proposed tariffs on Canada and Mexico.
• Trump's tariff plans could raise the costs of some medications for Americans.
• Additionally, Trump said on the campaign trail he would impose a 60% tariff on Chinese imports.

Tariffs are already a central feature of President Donald Trump's second-term agenda — and those could have a significant impact on what Americans pay for some medications.

In his inauguration speeches and Day One executive orders, the president detailed his plans for imposing sweeping tariffs on foreign goods, including a 25% tariff on Mexico and Canada. Trump said the tariff policies could begin on February 1. It follows his tariff proposals from the campaign trail, including a 60% tariff on imports from China.

Some trade policy experts previously told Business Insider that broad tariffs on key trading partners like Mexico and Canada could increase the prices of goods imported from those countries. This could also stretch to key medical drugs like pain relievers, antibiotics, and cancer treatments, several of which are used in the US and manufactured abroad.

Countries like China, Canada, and Mexico not only make prescription and over-the-counter medicines, but they also supply drug ingredients. In many cases, foreign-manufactured medications are more affordable than those directly made in America — but prices and access could change with tariffs.

Trump has previously denied that his tariff policies will increase prices for Americans. Trump's press team did not immediately respond to a request for comment from BI.

What tariffs mean for your medicine costs

Under Trump's tariff plans, frequently used medications could become more expensive. Per the nonprofit organization KFF, importing some pharmaceutical drugs or ingredients from other countries has made some medicines more affordable in the US than if they were manufactured domestically due to lower production costs and cheaper labor.

In 2023, Mexico exported 165 of the 350 pharmaceutical products and drug ingredients designated as critical by the International Trade Administration. Although it was a small share of America's total pharmaceutical imports — about 1.5%, per the nonpartisan policy research firm Wilson Center — Mexico supplied key ingredients for medicines like pain relievers and antibiotics. Major pharmaceutical and vaccine companies like Pfizer and AstraZeneca also have operations in Mexico.

Canada, too, manufactures some generic forms of over-the-counter and prescription medications, like pain relievers. Per the Census Bureau, the US imported about $5.8 billion in pharmaceutical preparations in 2023.

Some states, like Florida, have previously proposed importing some prescriptions from Canada to increase affordability. The FDA signed off on imports from Canada to Florida on a range of drugs, including those used to treat HIV, AIDS, and diabetes, and other states are working to get approval to import drugs from Canada in bulk to lower high prices.

Trump proposed even steeper tariffs on China, which could affect drug prices. A 2023 report by the policy analysis firm Atlantic Council found that, between 2020 and 2022, US imports of Chinese pharmaceuticals grew by over $8 billion, and China remains one of America's major medical suppliers. China manufactures many healthcare products used by Americans like pain relievers, cardiovascular medicine, cancer treatments and immunosuppressives, cold and cough medicine, antibiotics, and bandages.

Tariffs and trade restrictions on foreign pharmaceuticals could also lead to higher prices and drug shortages if the US is unable to manufacture cheaper alternatives. Trump has suggested enforcing a "universal tariff" on all imported goods, which may impact other main suppliers of medicine, like Ireland, Germany, Switzerland, and India.

Details are unclear on how exactly Trump will impose these tariffs, and the legal authority he uses would likely determine how soon the US could see the prices of goods change. Still, tariffs are not the only avenue through which Americans' healthcare could be impacted. On Monday, Trump signed a range of executive orders — some related to healthcare — including plans to pursue actions that will "eliminate unnecessary administrative expenses and rent-seeking practices" that raise healthcare costs.

Are you changing how you approach healthcare costs with to the new Trump administration? If so, reach out to [email protected] and [email protected].