President Donald Trump announced Tuesday that generic drugs imported into the U.S. will remain exempt from tariffs for two years before facing duties of up to 200%, as his administration seeks to push pharmaceutical manufacturing back to the U.S.
Beginning August 1, imported generic medicines will continue to face a 0% tariff for two years before duties increase to 100% for one year and then 200%, according to a post by Trump on Truth Social.
Trump Gives Drugmakers Two-Year Window Trump said the policy is designed to encourage drugmakers to relocate generic pharmaceutical manufacturing to the U.S., with companies that fail to build domestic plants during the transition period facing penalties.
"This is done in order to RESHORE Generic Pharmaceutical Production into America," Trump added.
Generic drugs account for more than 90% of prescriptions filled in the U.S., according to the Food and Drug Administration.
