WASHINGTON: President Donald Trump said on Tuesday all generic drugs being brought into the U.S. will continue having a tariff of 0% for two years starting from August 1, after which the tariff rate will be raised to 100% for one year and to 200% thereafter.* "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," Trump said in a post on Truth Social.* Trump has been pressuring drugmakers through his most-favored-nation drug pricing policy to lower prices to what people pay in other high-income countries.Also read | After Hormuz, Gate of Tears may make world cry. What about India?* More than 90% of medicines sold in the U.S. are generics, according to the U.S. Food and Drug Administration.* The policy on patented, branded, or innovative drugs will remain unchanged, Trump said.* The world's biggest drugmakers signed deals with the U.S. government last year that exempted billions of dollars of drugs from tariffs.Also read | Green card hopes dim again for Indians* Trump signed an executive order in April imposing 100% tariffs on branded pharmaceuticals imported into the U.S. unless manufacturers agree to government drug pricing deals or commit to making their products domestically.
Trump announces new generic drugs tariff plan: No tariffs for 2 years, then 100%, and then 200%
Trump has been pressuring drugmakers through his most-favored-nation drug pricing policy to lower prices to what people pay in other high-income countries.











