7 June 2025

Trump’s tariff threat exposes China’s tight grip on the global pharmaceuticals industry

John Liu and Yong Xiong, CNN

Employees work at a pharmaceutical production facility in Ji'an, Jiangxi province in southeast China, earlier this year. Deng Heping/VCG/AP
Hong Kong/New YorkCNN —

It’s the most prescribed antibiotic in the United States, used by tens of millions of people every year to treat bacterial infections including pneumonia, stomach ulcers, and strep throat.

Yet, it isn’t exactly common knowledge that amoxicillin, a relative of penicillin that has been in chronic short supply, has only one manufacturer in the US, or that China controls 80% of the raw materials required for its production.

That’s a major concern as US President Donald Trump threatens to impose tariffs on pharmaceutical imports, throwing a spotlight on America’s dependence on critical drug supplies from abroad.

“Increasing trade hostilities or more protracted conflicts could devastate our access to amoxicillin or the ingredients used to make it should Beijing weaponize its supply chain dominance,” Rick Jackson, founder and CEO of Jackson Healthcare, which owns America’s sole amoxicillin manufacturer, told CNN.

Last year, 96% of US imports of hydrocortisone (the active ingredient in the anti-itch cream), 90% of imports of ibuprofen (found in common over-the-counter pain relievers), and 73% of imports of acetaminophen (in other kinds of pain relievers) all came from China, according to CNN calculations based on trade data from the Census Bureau.

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