Trump threatens 100 percent generic drug tariffs beginning in 2028
Trump said the plan will push drugmakers to build U.S. plants or face sharply higher duties after a two-year grace period.
- President Trump announced a phased tariff plan on generic drug imports, granting a two-year zero-tariff grace period starting August 1, 2026, before imposing a 100% tariff in August 2028 and escalating to 200% in August 2029.
- The administration framed the policy as a leverage tool to reshore manufacturing, warning pharmaceutical companies that the steep duties serve as a penalty for those that fail to build production plants and equipment inside the U.S. during the two-year window.
- The announcement marks a major reversal for generic medicines, which were previously exempt from the administration's earlier tariffs of up to 100% on branded and patented pharmaceuticals.
- Health policy experts and industry groups voiced immediate concern, pointing out that generic drugs account for roughly 90% of U.S. filled prescriptions—with about 70% sourced overseas—and warning that a two-year window is far too short to rebuild complex drug and API supply chains without triggering severe price hikes or drug shortages.
- Major exporting nations, particularly India, face significant exposure. India supplies approximately 40% to 50% of U.S. generic prescriptions, leaving billions of dollars in pharmaceutical exports at risk if manufacturers cannot establish domestic U.S. facilities or negotiate trade carve-outs.
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Make in U.S. by August 2028 or pay up to 200% duty, Trump tells generic drugmakers
Effective August 1, 2026, all generic drugs being brought into the United States will continue to have a tariff of zero per cent for a two-year period of time, after which the tariff will be raised to 100% for a one-year period of time, and 200% thereafter, said Donald Trump
Milan, 22 Jul. (Adnkronos Salute) - "Today's statements by American president Donald Trump represent a change of scenery that deserves the utmost attention. While taking note of the announced transitional period, the introduction of duties on generic drugs risks producing effects that go far beyond international trade." It is the fear of Riccardo Zagaria, president of Equalia, the association of companies producing equivalent drugs, biosimilar a…
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