(Association for Accessible Medicines: Washington, DC) -- The Association for Accessible Medicines has commented on the proposed 25% tariff on imports from Canada and Mexico, as well as a 10% tariff on China.

“The global supply chain for generic and biosimilar medicines is critically important for U.S. patients,” says John Murphy III, president and CEO of the AAM. “From the base ingredients to the finished products, U.S. medicines rely on a global supply chain that is already stressed and in need of strengthening. Tariffs on products from Canada, Mexico, and China could increase already problematic drug shortages.

“Generic manufacturers simply can’t absorb new costs. Our manufacturers sell at an extremely low price, sometimes at a loss, and are increasingly forced to exit markets where they are under water. The overall value of all generic sales in the U.S. has gone down by $6.4 billion in five years, despite growth in volume and new generic launches. Tariffs would make this much worse.

“Americans pay less for generics than almost anywhere in the world but are facing growing challenges of drug shortages. The previous Trump administration opted not to impose tariffs on generic and biosimilar manufactures. AAM and its members urge the administration to follow their past practice and work with our industry on constructive policies and regulatory reforms that will bolster the resiliency and vibrancy of this critical healthcare market to the benefit of the American economy, lower overall health care costs, and keeping America’s patients healthy.”