US Drug Costs Affected by Canadian Pharma Tariffs

JAMA Network

About The Study: Although Canada is not the largest supplier of medications to the U.S., tariffs could raise costs and strain supply chains. This study estimates that $3 billion in U.S. pharmaceuticals depend on Canadian manufacturing, with 25% tariffs adding $750 million in cost. Although the Inflation Reduction Act provisions limit cost pass-through to some payers (i.e., Medicare), manufacturers may still adjust production or alter distribution, increasing supply chain fragility.

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