President Donald Trump announced a new tariff policy for generic drugs imported into the United States, saying all such imports will face a zero tariff for two years starting August 1, 2026. After the two-year period, the tariff will increase to 100% for one year and then rise to 200% thereafter. He said the policy is designed to bring generic pharmaceutical manufacturing back to the United States.
Trump said companies that do not establish pharmaceutical manufacturing plants and equipment in the US within the specified timeframe will face penalties. He added that the objective of the policy is to protect the people of the United States, while confirming that existing tariff and trade policies for patented, branded and innovative drugs will remain unchanged.
According to Trump, pharmaceutical manufacturing facilities are already being built across the United States at an unprecedented scale. His announcement comes as the Trump administration continues efforts to expand domestic drug production while leaving policies covering patented and branded medicines unchanged.
India exports around $10 billion worth of pharmaceutical products to the United States and has about 670 USFDA-approved manufacturing plants, the highest number outside the US. Around 90% of the US market served by Indian drugmakers by volume consists of generic medicines, while India accounts for nearly 40% of all generic drugs imported into the US.
The Trump administration had earlier launched a national security investigation into the pharmaceutical sector under Section 232 of the Trade Expansion Act and also introduced the direct-to-consumer discount drug sales platform “Trump RX.” Earlier tariff measures focused on patented and branded drugs, while generic medicines had been excluded, even though they account for nearly 90% of all prescriptions in the United States.
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