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How Generic Drug Tariffs Could Reshape Inflation
In this episode of The Macro Memo, Lucas and Luna dive into the Trump administration's latest proposal to impose tariffs on generic drugs starting in 2028, with a two-year delay. They explore the potential impact on pharmaceutical supply chains, consumer prices, and inflation. With core PCE still sticky at 2.6% and import prices from China at their highest since 2008, the hosts question whether this policy could lead to a spike in healthcare costs while the Fed navigates a delicate rate-cutting cycle. Lucas breaks down the economics of onshoring generic drug production, the concentration…
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