US President Donald Trump on Wednesday announced hefty tariffs on imported generic medicines starting August 2028, stressing that the move aims to reinstate the manufacturing of such pharmaceutical products.
The move may affect India, which is the largest exporter of generic drugs to the United States.
In a post on Truth Social, Trump said starting August 1, the United States will continue to impose a zero percent tariff on all generic drugs brought into the country for two years, after which it will be raised to 100 percent for one year, and then to 200 percent after that.
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“Beginning August 1, 2026, all generic drugs brought into the United States will remain subject to a zero percent tariff for two years, after which the tariff will be raised to 100 percent for one year, and 200 percent after that,” Trump said.
“This is being done in order to bring generic drug production back to America, with a penalty imposed on companies that decide not to build factories and equipment within the specified time period,” Trump said.
The president said that the goal of this policy is to protect the people of the United States.
“The policy regarding patented, branded or innovative medicines, which have been very successful, will remain the same,” he said.
India is often called the “pharmacy of the world” because it supplies generic medicines to countries all over the world.
In 2025, India exported US$9.7 billion worth of medicines to the US, accounting for 38 per cent of its total global pharmaceutical exports of US$25.8 billion, the Global Trade Research Initiative report said.
Indian generic medicines are widely prescribed to treat high blood pressure, diabetes, cancer, infectious diseases and mental health.
