President Donald Trump has announced sweeping tariffs on imported generic medicines, saying the measure is aimed at bringing pharmaceutical manufacturing back to the United States. The decision could have major implications for India, the world's largest supplier of generic drugs and one of the biggest exporters of medicines to the US.
Under the new policy, imported generic medicines will continue to attract a zero per cent tariff for two years from August 1, 2026. From August 1, 2028, the tariff will rise to 100 per cent for one year before increasing to 200 per cent thereafter.
Announcing the decision on his Truth Social platform, Trump said the policy is designed to encourage pharmaceutical companies to establish manufacturing facilities in the US. Companies that fail to shift production during the transition period would face the steep tariff regime.
