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.
219 Articles
219 Articles
The drug industry in Spain warns of possible problems in access to essential and affordable drugs.
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Tariff India, and half of America’s medicine cabinet could disappear
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