SerpApi.Org
President Donald Trump on Tuesday announced a phased tariff plan for imported generic drugs, giving manufacturers two years to move production to the United States before steep import duties take effect.
In a Truth Social post, Trump said imported generic drugs will continue to face a 0% tariff beginning Aug. 1 for two years. He said the tariff would then increase to 100% for one year before rising to 200%.
"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. The objective of this Policy is to protect the people of the United States. The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is. Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America."
The announcement expands the administration's pharmaceutical trade policy unveiled earlier this year. In April, Trump imposed tariffs on many imported patented pharmaceutical products under Section 232 of the Trade Expansion Act, arguing that U.S. dependence on foreign drug manufacturing posed a national security risk. Generic drugs and certain pharmaceutical ingredients, however, were exempted pending further action.
Tuesday's announcement lays out a timetable for ending that exemption. Trump did not specify whether the tariffs would apply to all imported generic drugs or whether companies that establish manufacturing facilities in the United States during the two-year transition period would qualify for exemptions.
The administration has argued that increasing domestic pharmaceutical production would strengthen supply chains and reduce U.S. reliance on overseas manufacturers for generic medicines and their ingredients.
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