In 2025, expanded U.S. tariffs on pharmaceuticals, APIs, and medical devices from China and India sought to reduce foreign dependence but instead strained supply chains, raised drug prices, and restricted access for vulnerable communities. This brief examines the economic and health impacts, using Texas as a case study, and considers interventions such as tariff exemptions for essential goods, domestic manufacturing incentives, and a federal–state emergency procurement program. It concludes that a hybrid approach—immediate tariff relief paired with long-term production incentives—best protects patient care while advancing trade policy goals.

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October 5, 2025