SUPPLIER DIVERSITY
There has been some support for this type of regulation, but so far this is inconsistent. With no amendments passed, Michelle says:“ Failing to ensure the US government and healthcare providers in the US have the same information as our European counterparts poses harm to providers, patients, caregivers and consumers in the US.”
Trade policies and political cuts Beyond supply chain engagement and reporting, global trade policies are also shaping the availability of medical devices and drugs.
The majority of ingredients for generic drugs in the US, including 95 % of ibuprofen and nearly all acetaminophen, come from China. If tariffs are imposed or diplomatic tensions escalate, these products may become more expensive and difficult to obtain.
Gene Seroka, Executive Director of the Port of Los Angeles, says he is already seeing a steep fall in Chinese imports:“ We’ ll start to see shortages in five to seven weeks if things don’ t improve.” Meanwhile, political uncertainty around the structure of the FDA could pose further risks. Health and Human Services Secretary Robert F. Kennedy Jr has proposed a reorganisation that includes the loss of 3,500 staff – many of whom are responsible for approving new therapies and monitoring supply chains.
Kennedy has also called for an end to the FDA’ s reliance on user fees from pharmaceutical companies, which currently fund nearly half of its US $ 7.2bn annual budget.
In response, industry bodies have raised concerns. John Murphy of the Association for Accessible Medicines, warns that any combination of tariffs and weakened oversight would“ pile onto the factors driving the scarcity,” particularly for lower-cost, high-need medications.
Arthur Wong, Healthcare Managing Director at S & P Global Ratings, notes:“ Generics account for roughly 90 % of all US prescriptions and tariffs would potentially raise costs for a significant portion of the market.”
162 June 2025