Trump Sets 100% Tariff on Generic Drugs With Two-Year Delay

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessTrump Sets 100% Tariff on Generic Drugs With Two-Year DelayGeneric drug manufacturers will have two years to move production to the US or face a 100% import duty from August 2028, President Donald Trump said in a social media post Tuesday.Author of the article:Laura Curtis and Derek Wallbank You can save this article by registering for free here. Or sign-in if you have an account.Trump has seized on the cost of drugs as a key driver of affordability concerns ahead of the 2026 midterm elections. Photographer: George Frey/Bloomberg Photo by George Frey /Bloomberg(Bloomberg) — Generic drug manufacturers will have two years to move production to the US or face a 100% import duty from August 2028, President Donald Trump said in a social media post Tuesday.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThat levy would then double a year later, to 200%, in August 2029.“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 in the post. Trump has seized on the cost of drugs as a key driver of affordability concerns ahead of the 2026 midterm elections. He has long complained about differences between what consumers pay in the US compared to foreign markets, and has repeatedly sought to cut that gap. The administration also recently launched a direct-to-consumer discount drug sales platform it branded as TrumpRX.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe White House has repeatedly set delayed tariff implementation dates with a looming deadline of devastating consequence as a means of creating leverage for future deals with countries and companies alike. The president has urged pharmaceutical companies to manufacture more of their medicines in the US, and in April 2025 his administration began a probe of the industry on national security grounds under Section 232 of the Trade Expansion Act.Trump said his administration’s tariff plans related to patented drugs would remain unchanged. That plan would seek tariffs of as much as 100% on certain imported medicines, though with several major exceptions. Most of the world’s biggest drugmakers, including Merck & Co. and Eli Lilly & Co., sidestepped the punitive moves by striking agreements with the administration.Generic Makers in Crosshairs Makers of generic drugs have fewer options. Unlike makers of patented medicines, they compete on thin margins and rely on global manufacturing networks, making it far harder to absorb tariffs.Chief Executive Officer Richard Saynor of Sandoz Group AG, one of the world’s largest generic producers, warned last year that America’s shift toward steep tariffs was likely to make drugs more expensive and limit access for patients. The Swiss company, along with competitors Teva Pharmaceutical Industries Ltd. and Viatris Inc., copies branded medications once they lose patent protection. It manufactures many of its generic medicines outside the US, with plants in Canada and Austria. Among the US’s trading partners, the hit would be most significant to India, which is the biggest exporter of generic medicines to the US. Pharmaceuticals are among India’s top three exports to America, totaling $10.5 billion in 2024-25, according to the country’s Commerce Ministry.Duties on drugs would leave over 40% of India’s exports to the US adversely affected, adding to existing levies on steel, aluminum, and autos.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Still, it was immediately unclear how much of Trump’s new tariff Indian drug companies will face: A trade pact struck by the two countries in February stipulated that India would “receive negotiated outcomes with respect to generic pharmaceuticals and ingredients.” Trump’s previous threats to impose tariffs on pharma imports put cheap supplies from India at risk, with commonly prescribed oral contraceptives, hypertension and depression treatments at the top of the list, according to an earlier Bloomberg News analysis of data provided by health care intelligence firm Symphony Health. In the case of birth control, roughly 65% of all pill prescriptions in the US in 2024 were manufactured by just two India-based companies, Glenmark Pharmaceuticals Ltd. and Lupin Ltd., it found. Separately, the White House has been working to replace Trump’s emergency duties after they were deemed unlawful by the Supreme Court earlier this year. An across-the-board rate of 10% is set to expire on Friday, and the administration is expected to impose levies on products from dozens of trading partners, citing what it said were lax forced-labor standards, before the end of the week.—With assistance from Hadriana Lowenkron, Swati Pandey, Jordan Fabian and Karthikeyan Sundaram.(Adds second section with details on generic makers.)Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.