Trump announces 100% tariffs on imported generic pharmaceutical drugs
US President Donald Trump announced that generic drugs imported into the US will have a 0% tariff for two years starting August 1, then 100% for one year, and 200% thereafter.
President Donald Trump said on Tuesday that all generic drugs brought into the US will continue to have a tariff of 0% for two years starting from August 1, after which the tariff rate will be raised to 100% for one year and to 200% thereafter. In a post on Truth Social, Trump stated that this measure is intended to reshore generic pharmaceutical production to America, penalizing companies that do not build plants and equipment within the allotted timeframe.
According to the US Food and Drug Administration, more than 90% of medicines sold in the US are generics. Trump has been pressuring drugmakers through his most-favoured-nation drug pricing policy to lower prices to what people pay in other high-income countries.
The policy on patented, branded or innovative drugs will remain unchanged. In April, Trump signed an executive order imposing 100% tariffs on branded pharmaceuticals imported into the US unless manufacturers agree to government drug pricing deals or commit to making their products domestically. Last year, the world's biggest drugmakers signed deals with the US government that exempted billions of dollars of drugs from tariffs.
