How Generic Drug Tariffs Could Reshape US Trade Balance

The US trade deficit widened to $77.6 billion in May, the largest monthly gap since 2022. But a new policy twist could reshape the numbers: the Trump administration's proposed 25% tariff on generic drugs, set to take effect in 2028. Lucas and Luna break down how this two-year delay is meant to incentivize domestic production, why generic drugs account for 90% of US prescriptions but most are made overseas, and whether the policy can actually narrow the trade deficit. They look at the specific case of India, which supplies 40% of America's generics, and discuss the risks of higher drug prices versus the goal of supply-chain security. Plus: how the strong dollar complicates the math on trade balance. #GenericDrugTariffs #USTradeDeficit #PharmaTrade #IndiaPharma #Onshoring #SupplyChainSecurity #DrugPrices #FexingoBusiness #BusinessPodcast #Economics #TradePolicy #Tariffs #GenericDrugs #USDollar #ImportPrices #China #Manufacturing #TradeBalance Keep every episode free: buymeacoffee.com/fexingo