Trump Announces High Tariffs on Generic Drugs Starting 2028

U.S. President Donald Trump is escalating pressure on pharmaceutical manufacturers by announcing significant tariffs on imported generic drugs, set to take effect in the summer of 2028. This policy aims to incentivize companies to shift their production facilities to the United States.

According to Trump's announcement on his online platform, generic drugs will remain duty-free for two years starting August 1, 2026. Following this grace period, a 100% import tariff will be imposed for one year, escalating to 200% thereafter. Generics, which are typically much cheaper than brand-name medications, will be subject to these substantial duties.

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From August 1, 2026, generics will be duty-free for two years, after which an import duty of 100 percent will be levied for one year, followed by 200 percent.

Trump stated that companies choosing not to establish production sites in the U.S. will face penalties, though he did not provide specific details. The legal basis for imposing these tariffs remains unclear. This initiative follows a similar announcement earlier in the spring regarding a 100% tariff on patented brand-name drugs, with a staggered start date from late July.

The European Union, including Germany, is exempt from these new measures due to an existing trade agreement. The overarching goal of these tariffs is to compel pharmaceutical companies to bring their manufacturing operations back to American soil, thereby boosting domestic industry and employment.

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Those who decide against production facilities in the USA will be punished.