Washington: US President Donald Trump on Wednesday, July 22, announced steep tariffs on imported generic medicines, with the move potentially affecting India, the largest exporter of generic drugs to the US.
In a post on Truth Social, Trump said the US would maintain a zero per cent tariff on all generic drugs imported into the country for two years from August 1, 2026. The tariff would then be raised to 100 per cent for one year and to 200 per cent thereafter.
“Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for two years, after which the TARIFF will be raised to 100 per cent for one year, and 200 per cent thereafter,” Trump said.
He said the move was aimed at bringing generic pharmaceutical production back to the US, with companies that choose not to establish plants and equipment within the specified period facing penalties.
“This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them,” Trump said.
The US president said the objective of the policy was to protect the American people.
“The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is,” he added.
The move could have a significant impact on India, which is often referred to as the “pharmacy of the world” for its large-scale supply of generic medicines to countries across the globe.
According to a Global Trade Research Initiative report, India exported pharmaceuticals worth USD 9.7 billion to the US in 2025, accounting for 38 per cent of its total global pharmaceutical exports of USD 25.8 billion.
Indian generic medicines are widely prescribed for the treatment of hypertension, diabetes, cancer, infectious diseases and mental health conditions.