Trump Plans Steep Tariffs on Generic Drugs Starting in 2028 to Spur U.S. Production
President Donald Trump announced a phased tariff plan on imported generic drugs, starting with zero tariffs for two years from August 1, 2026, followed by a 100% levy in August 2028 and a 200% levy in August 2029. The escalation is intended to penalize generic drugmakers that do not move production to the U.S. within the grace period. Patented and branded drugs remain under existing 100% tariffs. Major drugmakers including Eli Lilly, Pfizer, and Novo Nordisk have struck deals with Trump under his 'most favored nation' policy, exempting them from tariffs for three years in exchange for lowering U.S. drug prices. The policy has significant implications for India, which supplies nearly half of U.S. generic medicines, and China, which dominates upstream active pharmaceutical ingredient supply.
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