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Trump Announces 100% Tariff on Generic Drug Imports Starting in 2028

Trump Announces 100% Tariff on Generic Drug Imports Starting in 2028. Source: Shutterstock

U.S. President Donald Trump announced Tuesday that his administration will impose a 100% tariff on all imported generic drugs beginning in 2028, giving pharmaceutical companies a two-year window before the new trade policy takes effect. The move is part of a broader effort to bring generic drug manufacturing back to the United States and reduce reliance on overseas production.

In a post on Truth Social, Trump said generic pharmaceutical imports will remain exempt from tariffs until 2028. After that, a 100% tariff will be applied to imported generic medicines, with the duty set to increase to 200% at a later stage.

According to Trump, the policy is designed to encourage drugmakers to establish manufacturing plants and expand production capacity in the United States.

“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,” Trump wrote.

The latest announcement follows earlier actions by the Trump administration targeting pharmaceutical imports. Earlier this year, Trump signed a proclamation imposing a 100% tariff on imported patented pharmaceuticals and has repeatedly pushed for higher duties on drug imports as part of his broader trade strategy.

Trump has argued that increasing domestic pharmaceutical production will strengthen U.S. supply chains, improve national security, and reduce dependence on foreign manufacturers.

The president also reiterated that pharmaceutical companies could avoid the tariffs if they agree to his "most favored nation" pricing policy. Under the proposal, drugmakers would charge U.S. buyers prices comparable to those paid in other countries, an approach Trump says would lower prescription drug costs for Americans.

In addition, Trump announced tariff exemptions for companies that commit to building pharmaceutical manufacturing facilities in the United States. The administration views the combination of tariffs and investment incentives as a way to accelerate the reshoring of drug production while encouraging long-term investment in the U.S. pharmaceutical industry.

The proposed tariffs are expected to have significant implications for global pharmaceutical supply chains, generic drug manufacturers, and healthcare costs as companies evaluate whether to shift production to the United States before the new duties take effect.

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