0%, 100%, then 200%: How Trump's new generic drug tariff plan could hit India
President Trump has announced a phased tariff plan for imported generic medicines, starting with zero tariffs for two years followed by significant increases to 100% and 200%. The policy aims to encourage the reshoring of pharmaceutical manufacturing to the United States.
Why it matters
This policy could significantly disrupt the global pharmaceutical supply chain, particularly for India, which supplies nearly half of all generic prescriptions in the US.
President Donald Trump on Wednesday announced a phased tariff plan for imported generic medicines, saying they would continue to enter US duty-free for the next two years before attracting tariffs of up to 200%.In a post on Truth Social, Trump said generic medicines imported into the US would continue to attract zero tariffs from August 1, 2026, for two years, after which the duty would rise to 100% for one year and 200% thereafter."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 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…
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