A new study obtained exclusively by Fox News Digital reveals that the opioid crisis under the Biden administration cost the U.S. $2.7 trillion in 2023 alone. The study, released by the Council of Economic Advisers, highlights the devastating economic impact of the opioid epidemic, which “dwarfs even pessimistic estimates” of the costs associated with tariffs.
The report, published on February 7, 2025, details that the $2.7 trillion figure accounts for losses related to life, quality of life, labor force productivity, crime, and healthcare system expenses. The opioid epidemic, fueled largely by the synthetic opioid fentanyl, has been a persistent issue for years. Fentanyl primarily originates in China and enters the U.S. through the Mexico border.
Former President Donald Trump has been leveraging tariffs on Canada, Mexico, and China to strengthen border security and curb the flow of fentanyl into the U.S. Critics argue that these tariffs will increase costs for American consumers purchasing goods from these countries. However, the study contends that the economic burden of the opioid epidemic far exceeds the potential costs of tariffs.
The Council of Economic Advisers based its findings on a 2017 Centers for Disease Control and Prevention report, adjusted for inflation, opioid-related deaths, and dependency. In 2023, the loss of life due to opioids cost the U.S. $1.11 trillion, calculated by multiplying the 74,702 opioid deaths that year by the value of a statistical life and adding productivity and healthcare costs.
An additional $1.34 trillion was attributed to the loss of quality of life for individuals struggling with opioid addiction. The study found that life with opioid use disorder (OUD) has about 60% of the quality of life of those in full health. The healthcare system bore an estimated $107 billion in costs related to treating individuals with OUD, while lost labor productivity due to the crisis also amounted to $107 billion. Opioid-related crime, including police protection, court proceedings, and incarceration, cost the U.S. $63 billion.
The study concluded that the $2.7 trillion economic toll underscores the urgent need to address the flow of illicit drugs into the country. “The human suffering and financial burden inflicted by this epidemic are unsustainable,” the report stated.
Trump’s administration has implemented tariffs on imports from Canada, Mexico, and China as part of a broader border security strategy. Critics, including Senate Minority Leader Chuck Schumer, have warned that these tariffs could increase prices for everyday goods such as Mexican beer, Canadian lumber, and Chinese electronics. Despite these concerns, the study argues that the costs of the opioid epidemic far outweigh the economic impact of tariffs.
The Council of Economic Advisers previously released a report in 2019 estimating that the opioid epidemic cost the U.S. $2.5 trillion from 2015 to 2018. The recent study’s higher figure reflects the inclusion of reduced quality of life costs and the significant increase in opioid-related deaths since 2015.
