US President Donald Trump Announces Upto 200 Per Cent Tariffs On Generic Drug Imports; India Pharma Exports Likely To Be Hit
US President Donald Trump has announced a phased tariff plan on imported generic medicines, with duties set to rise to 100% in 2028 and 200% thereafter. The move aims to shift pharmaceutical manufacturing to the US and could significantly impact India's exports, which accounted for $9.7 billion of shipments to the American market in 2025.
US President Donald Trump Announces Up To 200% Tariffs On Imported Generic Medicines, Threatening India's $9.7 Billion Pharma Exports To US |
Washington, July 22: US President Donald Trump on Wednesday announced steep tariffs on imported generic medicines, with the higher duties set to take effect from August 2028, saying the move is intended to bring pharmaceutical manufacturing back to the US.
The decision could have a significant impact on India, the largest exporter of generic medicines to the US.
In a post on Truth Social, Trump said generic medicines imported into the US will continue to attract a zero per cent tariff for two years from August 1, 2026. The tariff will then increase to 100 per cent for one year from August 2028, before rising 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.
"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 policy is aimed at protecting the people of the United States.
"The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is."
India's Pharma Exports At Risk
India, often referred to as the "pharmacy of the world", supplies generic medicines to countries across the globe. In 2025, the country exported pharmaceuticals worth USD 9.7 billion to the US, accounting for 38 per cent of its total global pharma exports of USD 25.8 billion, according to a Global Trade Research Initiative report.
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Generic Medicines Widely Used
Indian generic medicines are widely prescribed in the US for the treatment of hypertension, diabetes, cancer, infectious diseases and mental health conditions.
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