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Trump unveils phased generic drug tariffs
The policy could carry major implications for global pharmaceutical manufacturers that supply generic medicines to the US
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IANS - Wed, 22, Jul 2026
- 03:14 EDT
- 21
President Donald Trump. / Xinhua via IANS
US President Donald Trump has announced that imported generic medicines will remain free of tariffs for two years from Aug. 1, 2026, before facing duties of 100 percent and later 200 percent as part of his push to shift pharmaceutical production to the United States.
The announcement gives overseas generic drug manufacturers a two-year window to establish production facilities in the US or face steep tariffs on medicines shipped to the American market.
“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 said in a social media post Tuesday.
The policy could carry major implications for global pharmaceutical manufacturers that supply generic medicines to the US. Trump’s statement did not name any country or company and offered no details about how the tariff system would be administered.
It also did not specify whether companies that begin building plants during the two-year period would qualify for an exemption or whether production would have to start before the higher duties take effect.
Trump said the phased tariff structure was intended to encourage drugmakers to invest in American manufacturing facilities.
“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,” he said.
“The objective of this Policy is to protect the people of the United States,” Trump added.
Under the timeline announced by the president, generic drug imports would continue to enter the US without tariffs for two years after Aug. 1. They would then face a 100 percent tariff for one year, followed by a 200 percent duty.
Trump distinguished the new timetable for generic medicines from his administration’s treatment of patented and branded drugs.
“The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is,” he said, without providing further details about that policy in the announcement.
The president said pharmaceutical companies were already expanding their manufacturing presence across the country.
“Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America,” Trump said.
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