Trump announces 0% tariff on generic medicines for two years; 200% thereafter
US President Donald Trump on Tuesday announced a phased tariff regime on imported generic medicines, saying they will continue to enter the United States duty-free for two years and then steep tariff hikes aimed at bringing pharmaceutical manufacturing back to the country.Announcing the policy, Trump said the move was intended to encourage companies to manufacture generic medicines domestically.“Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT 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. This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them. The objective of this Policy is to protect the people of the United States,” Trump said on Truth Social.He added that the policy for “Patented, Branded, or Innovative Drugs” would remain unchanged, claiming it had been successful. Trump also said pharmaceutical manufacturing facilities were “being built, at a level never seen before, all over the United States of America.”Generic medicines account for more than 90% of prescriptions dispensed in the United States, according to the US Food and Drug Administration.The announcement follows Trump’s broader push to increase domestic pharmaceutical production and lower drug prices through his “most-favored-nation” pricing policy. Last year, major drugmakers reached agreements with the US government that exempted billions of dollars’ worth of medicines from tariffs, while Trump also imposed tariffs on imported branded pharmaceuticals unless manufacturers agreed to pricing deals or committed to producing them in the US.
