With tariffs on China in effect, Lincoln pharmacist warns about impact on drug supply

LINCOLN, Neb. (KLKN) – As President Donald Trump’s 10% tariff on Chinese imports started on Tuesday, a warning came from the medical industry.

Health experts said it could drive up the cost of generic drugs in the U.S. and possibly cause shortages.

About half of the generic drugs taken in the U.S. are made entirely overseas, according to Harvard Medical School.

This includes cancer drugs, antibiotics and blood thinners.

And around 80% of the active pharmaceutical ingredients, or APIs, used in drugs come from other countries.

With China having about 219 API manufacturing facilities, the tariff could lead to shortages.

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Amanda DeGrave, a certified pharmacy technician at Nebraska LTC Pharmacy, tells me this will hurt the bottom line of pharmacies.

“The reimbursement rates are already very low for generic medications,” she said. “With the expected increase in pricing of medications, I don’t feel that the reimbursement from insurance companies is going to match that. So we’re going to be reimbursed the same rates from insurance companies, but the medications to purchase and to provide them are going to cost us a lot more.”

She said the main concern of the pharmacy is always the patient, but with the shortages, it could mean they can’t fulfill every prescription.

“Our concern is being able to provide the medications that have been prescribed for our patients and not having access to them or having to pay a considerable amount or higher amount in order to be able to get those and keep them in stock,” she said.

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In order to prevent higher costs, experts said some hospitals may start stockpiling drugs.

Neveen on the NOW Local News App said she didn’t realize how many drugs are made in China.

“I am on medication and unless you have really good insurance, private insurance or if you have Medicaid, it can be very costly,” she said.

Kevin said this is going to impact everyone’s wallet heavily.

“It’s going to cause a lot of problems for people that are trying to be healthy, stay healthy and get better,” he said.