Trump announces tariff plan on imported generic medicines: 0% for two years, 100% from 2028 and 200% later

US President Donald Trump has imposed a new tariff policy for imported generic medicines, outlining a phased increase in duties aimed at shifting pharmaceutical manufacturing back to the United States. Under the plan, imported generic drugs will continue to enjoy zero tariff for the next two years before facing steep duty hikes beginning in 2028. Announcing the decision on his Truth Social platform, Trump said the policy is intended to encourage pharmaceutical companies to establish manufacturing facilities in the US instead of relying on overseas production. The proposal is the latest step in his broader strategy to strengthen domestic manufacturing and reduce dependence on imported medicines.

How the tariff plan will work

According to Trump’s announcement, imported generic medicines will continue to attract a zero per cent tariff from August 1, 2026, for a period of two years. After this transition period ends, the tariff will increase to 100 per cent for one year before rising further to 200 per cent thereafter.

“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,” Trump wrote.

Trump says move aims to bring drug manufacturing back to US

Explaining the rationale behind the policy, Trump said the tariff structure is designed to encourage companies to invest in pharmaceutical manufacturing plants within the United States. Companies that choose not to shift production during the transition period, he suggested, would eventually face significantly higher import costs.

“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 wrote.

The US President also claimed that pharmaceutical manufacturing facilities are already being established across the country at an unprecedented pace as part of his administration’s efforts to expand domestic production.

“The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is. Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America,” he added.

Generic medicines play a critical role in the US healthcare system

The proposed tariff policy targets generic medicines, which account for the overwhelming majority of prescriptions dispensed across the United States. According to the US Food and Drug Administration (FDA), more than 90 per cent of prescriptions filled in the country are generic drugs, making the sector a crucial part of the American healthcare system due to its affordability and widespread use.

Part of Trump’s broader pharmaceutical strategy

The latest announcement is consistent with Trump’s wider push to increase pharmaceutical manufacturing within the United States while attempting to lower medicine costs. His administration has also promoted a “most-favored-nation” pricing policy aimed at reducing drug prices. Last year, several major pharmaceutical companies reached agreements with the US government that exempted billions of dollars worth of medicines from tariffs. Trump also imposed tariffs on imported branded medicines unless manufacturers either agreed to pricing arrangements with the government or committed to producing their medicines in the United States.

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