Make in U.S. by August 2028 or pay up to 200% duty, Trump tells generic drugmakers
U.S. President Donald Trump has announced a new policy requiring generic drugmakers to establish manufacturing facilities in the U.S. by August 2028 or face tariffs of up to 200%. The move aims to reshore pharmaceutical production and reduce reliance on overseas supply chains, though industry leaders warn it could significantly increase medicine costs for American consumers.
Why it matters
As India supplies nearly 47% of U.S. generic prescriptions, this policy threatens to disrupt global pharmaceutical supply chains and force a major restructuring of the healthcare cost landscape.
U.S. President Donald Trump has given generic pharmaceutical companies a two-year window to establish manufacturing facilities in the United States, warning that products imported after August 2028 could face tariffs of up to 200%.
The announcement, made on Wednesday (July 22, 2026) through a social media post, has significant implications for India, which sends more than a third of its pharmaceutical exports to the U.S. While Indian drugmakers sought to strike a cautious note, they warned that higher tariffs would ultimately increase medicine costs for American consumers.
Mr. Trump said the measure is intended to encourage generic drug production in the U.S. and reduce dependence on overseas supply chains.
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