Trump unveils steep US tariffs on generic drugs after two-year pause

Washington,UPDATED: Jul 22, 2026 06:34 IST

US President Donald Trump on Wednesday announced steep tariffs on imported generic medicines, saying the move is aimed at bringing pharmaceutical manufacturing back to the United States. Under the plan, generic drugs imported into the US will continue to face a zero per cent tariff for two years from August 1, 2026, before the duty rises sharply.

The announcement could have implications for India, the largest exporter of generic drugs to the US. Trump said the tariff on all generic drugs brought into the US would rise to 100 per cent for one year after the two-year zero-tariff period, and to 200 per cent thereafter.

In a post on Truth Social, Trump said, "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." He added, "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."

The US president said the objective of the policy is to protect the people of the United States. He also said, "The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is."

India is often called the "pharmacy of the world" because it supplies generic medicines to countries across the globe. A Global Trade Research Initiative report said India exported USD 9.7 billion worth of pharmaceuticals to the US in 2025, accounting for 38 per cent of its total global pharma exports of USD 25.8 billion. Indian generic medicines are widely prescribed for hypertension, diabetes, cancer, infectious diseases and mental health, underlining the importance of the US market for the sector.

With PTI Inputs

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