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Trump announces steep tariffs on imported generic drugs

generalJul 22, 202622375

President Donald Trump announced a phased tariff plan that would impose no tariffs on imported generic medicines for two years, then a 100 percent import duty starting August 2028 and rising to 200 percent a year later. The administration says the duties are intended to bring pharmaceutical manufacturing back to the United States, targeting a global generics industry worth nearly $500 billion. Industry leaders warn the two-year grace period may be too short; Namit Joshi of India's Pharmaceuticals Export Promotion Council said building a domestic generic manufacturing ecosystem takes a minimum of four to five years. John Murphy III, president and CEO of the Association for Accessible Medicines, said generics makers have expanded U.S. footprints but face structural problems in purchasing and reimbursement that limit onshoring. CNBC reports generic medicines account for about 90 percent of U.S. prescriptions but represent a small share of total drug spending, and many generic manufacturers operate on thin margins. Analysts and consultants cited by CNBC say firms facing tariffs could absorb costs, pass them to customers, invest in moving production over time, or stop selling medicines that become uneconomic.

Financial Times
@financialtimes.com

The US president said some of the most widely used drugs in the country would face tariffs of 100% from August 2028, rising to 200% a year later as part of his latest effort to move manufacturing to America. ft.trib.al/qAfPnYW

Image description: A pharmacy technician in a blue shirt reaches for a bottle of medication from shelves filled with various prescription drug containers. Credit: George Frey/Getty Images. Overlaid text reads: Donald Trump plans 100% tariffs on generic drugs in 2028
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