Trump announces 100% tariff on generic drugs by 2026

Huo Xing Finance reports that on July 22, U.S. President Trump posted that, starting August 1, 2026, all imported generic drugs will continue to be subject to zero tariffs for the next two years. After the two-year period, these products will be subject to a 100% tariff for one year; thereafter, the tariff will increase further to 200%. Trump stated that the purpose of this policy is to encourage the return of generic drug manufacturing to the United States. Companies that fail to establish production facilities and related equipment in the U.S. within the specified timeframe will face tariff penalties. The current policies regarding patented drugs, branded drugs, and innovative drugs will remain unchanged due to their effective implementation. On April 2, the White House issued a statement announcing that President Trump signed a document under Section 232 of the Trade Expansion Act of 1962, imposing a 100% tariff on imported patented drugs and pharmaceutical ingredients. This measure includes pathways for exemptions or reduced tariffs, aimed at compelling pharmaceutical companies to negotiate with the White House on drug pricing and industry repatriation.