Trump Tariff on generic medicines: President Donald Trump has announced to impose tariffs on generic drugs imported into America. It will be implemented in a phased manner. Trump said that there will be no tariff on medicines for two years. After this, 100 percent tariff will be charged for one year, which will later be increased to 200%. Trump also gave the reason behind his decision.
Announcement of tariff on generic medicines
Trump informed about his decision in a post on Truth Social. He said, “From August 1, 2026, zero percent tariff will be applicable for two years on all generic drugs coming into the US. After this, the tariff will be increased to 100% for one year and then to 200% after that. This is being done to bring (reshoring) the work of manufacturing generic drugs back to the US.”
According to Trump, companies that do not build plants and equipment within the stipulated time frame will be fined. He said that the purpose of this policy is to protect the people of America. There will be no change in the policy on patented, branded or innovative medicines which is already in operation and has been very successful. Pharmaceutical facilities are being built across the United States on a scale never seen before.
India is called the ‘Pharmacy of the World’ and about 40-50% of the generic medicines sold in America are supplied by Indian companies. According to Trump’s decision, there will be 0% tariff on generic medicines for the next two years. This means that at present no additional tax will have to be paid on generic medicines sent from India to America, which will give time to Indian pharma companies to make their plans and explore options.
After this, if Indian companies do not set up their plants or manufacturing units in America, then due to 200% tax, they may have to suffer losses in exporting medicines from India. Besides, its burden will also fall on American customers, due to which Indian generic medicines will become expensive there.