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Trump threatens 100 percent generic drug tariffs beginning in 2028
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by Nathaniel Weixel - 07/22/26 10:22 AM ET
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White House Headlines - July 22, 2026
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Trending on The Hill - July 22, 2026
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White House Headlines - July 22, 2026
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White House Headlines - July 22, 2026
Imported generic drugs will face a 100 percent tariff beginning in August 2028 unless manufacturers move production to the U.S., President Trump said in a social media post Tuesday.
Trump wrote on Truth Social the move is aimed at “reshoring” generic pharmaceutical production in America. The tariffs amount to a “penalty” that would hit companies if they don’t cooperate and would double to 200 percent in 2029, Trump wrote.
The administration has not yet released an official policy implementing the tariffs.
If implemented, the move could upend the generic drug industry, most of whose products are manufactured in factories in Europe and India.
It would put generic medicines on par with branded drugs, which will be subject to tariffs as high as 100 percent at the end of the month. The Trump administration initially exempted generic drugs.
Trump has made drug prices a central focus of efforts to address cost-of-living concerns, as affordability remains a top issue for Americans ahead of the midterm elections. He has long complained about the much lower prices drug companies charge overseas compared with the U.S. and has sought to address that gap through pressure including tariffs and “most favored nation” pricing agreements, where drugmakers agree not to charge more for certain products than what patients pay in other high-income countries.
Last month, the U.S. trade representative launched an investigation into Germany’s pharmaceutical pricing system that could result in tariffs.
In December, the administration entered into a trade deal with the United Kingdom that would exempt U.K. pharmaceuticals from U.S.-imposed tariffs in exchange for Britain paying more for medicines.
The Association for Accessible Medicines (AAM), which represents generic drugmakers, said it needed more details about Trump’s move and urged the administration to address existing barriers to expanding domestic production.
“We need to understand more the specifics of the policy, but the generics industry is committed to pursuing policies that support and stabilize both the industry and the access necessary to ensure patients have reliable options for affordable medicines,” AAM President and CEO John Murphy III said in a statement.
“Our industry has several legislative and regulatory solutions to address the market deficiencies and we look forward to dialogue with the Administration and with Congress to pursue solutions that restore the generics industry to growth and to prioritize its place as a critical national security asset here in the U.S.”
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