US President Donald Trump on Wednesday announced a phased tariff regime on imported generic medicines beginning August 2028, a move aimed at shifting pharmaceutical manufacturing back to the United States.
The policy is expected to have significant implications for India, the world's largest supplier of generic medicines and the biggest exporter of such drugs to the US.
In a post on Truth Social, Trump said generic drug imports would continue to attract zero tariffs for two years from August 1, 2026, before facing sharp increases.
"Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for two years, after which the TARIFF will be raised to 100 per cent for one year, and 200 per cent thereafter," Trump said.
"This is done 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 said.
The president said the objective of the policy was to safeguard Americans while encouraging companies to manufacture within the US.
"The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as it is," he said.
India exported pharmaceutical products worth USD 9.7 billion to the US in 2025, accounting for 38 per cent of its total global pharma exports of USD 25.8 billion, according to the Global Trade Research Initiative. Indian-made generic medicines are widely used in the US to treat conditions including hypertension, diabetes, cancer, infectious diseases and mental health disorders.
Trump's announcement comes amid a broader push by his administration to expand tariff measures. Earlier this week, US Trade Representative Jamieson Greer told The New York Times that Washington was preparing new tariffs to replace levies struck down by the Supreme Court earlier this year.
The administration is also planning fresh tariffs of 10 to 12.5 per cent on imports from as many as 60 countries, including India, citing investigations into alleged forced-labour practices and unfair trade policies.
Emphasising the economic rationale behind the tariff strategy, Greer said: “This is not a foreign policy shop. This is an economics shop here. And so when I look at someone like the European Union that blocks American agricultural goods for specious, nonscientific reasons, that's a problem. Friend or foe, that's an issue.”
(With inputs from PTI)
