Trump says US to phase in tariffs on imported generic drugs to spur domestic production

President Donald Trump said on Tuesday that the US would begin phasing in steep tariffs on imported generic drugs from 2028, while maintaining a zero-tariff rate for the next two years to give manufacturers time to expand production in the country.

"Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a tariff of zero percent for a two year period of time, after which the TARIFF will be raised to 100% for a one year period of time, and 200% thereafter," Trump said on Truth Social.

The president said the phased approach was intended to encourage pharmaceutical companies to relocate generic drug manufacturing to the US.

"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," he said, adding that the objective of this policy is to protect the people of the US.

Trump added that the administration's policy toward patented, branded and innovative medicines would remain unchanged, saying it had been successful.

"The Policy on Patented, Branded, or Innovative Drugs ... will remain as is," he wrote.