Trump's health care tariffs could raise drug costs

A lot of U.S. drugs are made in China. Photo: Stanislav Krasilnikov\TASS via Getty Images

There are a lot of medical products on the Trump administration’s list of candidates for the new 25% tariffs it wants to impose on China, including vaccines; insulin products; MRI machines, surgical tools and other medical devices; and a host of raw ingredients for pharmaceuticals.

Why it matters: An enormous amount of the ingredients in American pharmaceuticals are made in China. As those prices rise, the cost of drugs could rise, too — and the impact could be especially dramatic for generics.