Trump Sets 100% Tariff on Generic Drugs With Two-Year Delay

Trump has seized on the cost of drugs as a key driver of affordability concerns ahead of the 2026 midterm elections. Photographer: George Frey/Bloomberg Photo by George Frey /Bloomberg

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(Bloomberg) — Generic drug manufacturers will have two years to move production to the US or face a 100% import duty from August 2028, President Donald Trump said in a social media post Tuesday.

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That levy would then double a year later, to 200%, in August 2029.

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“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 said in the post. 

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Trump has seized on the cost of drugs as a key driver of affordability concerns ahead of the 2026 midterm elections. He has long complained about differences between what consumers pay in the US compared to foreign markets, and has repeatedly sought to cut that gap. The administration also recently launched a direct-to-consumer discount drug sales platform it branded as TrumpRX.

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The White House has repeatedly set delayed tariff implementation dates with a looming deadline of devastating consequence as a means of creating leverage for future deals with countries and companies alike. 

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The president has urged pharmaceutical companies to manufacture more of their medicines in the US, and in April 2025 his administration began a probe of the industry on national security grounds under Section 232 of the Trade Expansion Act.

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Trump said his administration’s tariff plans related to patented drugs would remain unchanged. That plan would seek tariffs of as much as 100% on certain imported medicines, though with several major exceptions. 

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Most of the world’s biggest drugmakers, including Merck & Co. and Eli Lilly & Co., sidestepped the punitive moves by striking agreements with the administration.

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Generic Makers in Crosshairs 

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Makers of generic drugs have fewer options. Unlike makers of patented medicines, they compete on thin margins and rely on global manufacturing networks, making it far harder to absorb tariffs.

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Chief Executive Officer Richard Saynor of Sandoz Group AG, one of the world’s largest generic producers, warned last year that America’s shift toward steep tariffs was likely to make drugs more expensive and limit access for patients. 

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The Swiss company, along with competitors Teva Pharmaceutical Industries Ltd. and Viatris Inc., copies branded medications once they lose patent protection. It manufactures many of its generic medicines outside the US, with plants in Canada and Austria. 

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Among the US’s trading partners, the hit would be most significant to India, which is the biggest exporter of generic medicines to the US. Pharmaceuticals are among India’s top three exports to America, totaling $10.5 billion in 2024-25, according to the country’s Commerce Ministry.

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Duties on drugs would leave over 40% of India’s exports to the US adversely affected, adding to existing levies on steel, aluminum, and autos.