Trump announces 100% tariff on generic drugs after two-year period

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CFT (Countering the Financing of Terrorism) policies took a new turn as U.S. President Trump announced on July 22, 2026, that imported generic drugs will face 100% tariffs after August 1, 2028. The zero-tariff period will last two years, with a 200% tariff following in the next year. Companies not building domestic facilities by the deadline will face penalties. Patented and brand-name drugs remain unaffected. This follows Trump’s April 2, 2026, move under the Trade Expansion Act to impose tariffs on patented drugs. The shift could impact risk-on assets in global markets.

ChainThink reports that on July 22, U.S. President Trump posted that starting August 1, all imported generic drugs will continue to be subject to zero tariffs for the next two years.

After two years, the relevant products will be subject to a 100% tariff for one year; thereafter, the tariff will be increased further to 200%. Trump stated that this policy aims to bring generic drug production back to the United States.

Companies that fail to build production facilities and related equipment in the United States within the specified timeframe will face tariff penalties. The current policies regarding patented drugs, branded drugs, and innovative drugs will remain unchanged.

On April 2, the White House announced that Trump had signed a document under Section 232 of the Trade Expansion Act of 1962, imposing a 100% tariff on imported patented drugs and pharmaceutical ingredients, while providing pathways for exemptions or reduced tariffs.

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