WASHINGTON, D.C. — President Donald Trump announced that imported generic medicines will face steep new tariffs beginning in 2028 unless manufacturers shift production to the United States.
Under the plan, generic drugs entering the country will remain tariff-free for two years beginning Aug. 1, 2026. A 100% import duty will take effect in August 2028 and remain for one year before increasing to 200% in August 2029. The administration’s existing tariff policies for patented and brand-name pharmaceuticals will remain separate.
Trump said the delayed implementation gives foreign manufacturers time to construct American plants and relocate production. Many generic medicines and their active ingredients are currently manufactured in lower-cost markets, particularly China and India.
The policy could significantly affect the U.S. healthcare system because generic drugs account for more than 90% of prescriptions filled nationwide while representing a relatively small share of total drug spending.
Swiss manufacturer Sandoz said it would consult U.S. policymakers but needed more information before evaluating possible investments. Industry analysts warned that rebuilding domestic manufacturing could strengthen supply chains but also increase production expenses and consumer prices.
Specific exemptions, enforcement procedures and treatment of companies already constructing U.S. facilities have not yet been fully detailed.
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