The president Donald Trump announced a phased plan to impose tariffs of up to 200% on imports of generic medications to the United States, as part of his strategy to relocate pharmaceutical production to U.S. soil.
The leader shared the details of the plan on his social media Truth Social, where he specified the timeline for implementing the new rates.
According to what was announced, the measure is not immediate.
"Starting August 1, 2026, all generic drugs imported to the United States will continue to be subject to a 0% tariff for a period of two years, after which the tariff will increase to 100% for one year and then to 200% thereafter," Trump wrote.
That is to say, generics will continue to enter the country without tariff charges until August 2028, when the increase will begin.
Trump justified the initiative with a national security and industrial sovereignty argument: the goal is to "relocate" the production of generics within the country, with "a penalty for those companies that decide not to build plants and equipment within the established timeframe."
In his own words, "the objective of this policy is to protect the people of the United States."
The announcement expands the pharmaceutical tariff offensive that Trump had already initiated in April 2026, when he signed a proclamation imposing tariffs of up to 100% on imported patented medications and their active ingredients.
On that occasion, generics were explicitly excluded, although the administration warned that it would review that decision within a year. The new plan fulfills that warning.
Regarding patented medications, Trump clarified that he will not modify the April scheme: the structure of up to 100% remains in place, along with the exemptions already established for companies that move their production to the United States or that enter into price agreements with the Government.
The potential impact of the measure is considerable. Generic medications account for approximately 90% of all prescriptions filled in the United States, yet only between 12% and 17% of total pharmaceutical spending.
The supply chain for these drugs heavily relies on India and China: 87% of the manufacturing plants for active pharmaceutical ingredients are located outside the country, with a strong concentration in Asia. India is one of the most exposed countries, as nearly 90% of its pharmaceutical exports to the United States consist of generics.
The industry has warned that generic manufacturers operate with very narrow margins and that any additional costs would inevitably be passed on to patients and payers, posing a risk of shortages of essential medications.
This tariff policy is part of a broader strategy by the administration to lower the cost of pharmaceuticals.
In December 2025, 14 of the 17 largest pharmaceutical companies in the world agreed to lower prices under the "Most Favored Nation" policy, with discounts of up to 70% on Medicaid.
Months later, in February 2026, Trump launched TrumpRx.gov, a direct selling platform for discounted medications, although experts noted that it only benefits those who pay in cash, excluding the majority of insured individuals.
If implemented, the plan could face legal challenges.
In February 2026, the Supreme Court struck down the reciprocal tariffs imposed under the International Emergency Economic Powers Act, ruling that Trump had exceeded his authority.
However, the pharmaceutical tariffs are backed by Section 232 of the Trade Expansion Act of 1962, a legal basis that was not addressed by the Supreme Court ruling, which gives the administration greater leeway to uphold the measure in the courts.
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