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Most people never think about where their pills are manufactured until trade policies threaten to shake up global supply chains. Now, a sweeping new tariff plan could force the entire pharmaceutical industry to rethink how it operates, reports Money.pl.
Two year window
Donald Trump has issued a strict ultimatum to international pharmaceutical manufacturers. Money.pl reported that the American president announced massive future import taxes on low cost generic medicines entering the United States.
Writing on Truth Social, Donald Trump laid out a phased timeline for the new policy. “Starting August 1, 2026, all generic drugs imported into the United States will continue to be subject to a zero percent tariff for two years, after which the tariffs will be increased to 100 percent for one year, and then to 200 percent,” he stated.
Under the announced schedule, generic medicines will enter duty free until August 2028. After that grace period ends, importers face a steep 100 percent duty, followed by a punishing 200 percent tax starting in 2029.
The administration hopes the two year grace period will give foreign manufacturers enough time to build new domestic facilities on American soil.
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Onshoring the pills
Trump explained that the primary goal of the aggressive tax plan is bringing factory jobs back home. “This action aims to move generic pharmaceutical production back to America , along with imposing penalties on companies that choose not to build factories and equipment within the specified period given to them. The purpose of this policy is to protect the people of the United States,” he added on social media.
Meanwhile, rules governing brand name, patented, and innovative drugs will remain unchanged under the latest decision.
Back in April, executive orders imposed 100 percent import duties on brand name medications. However, several major pharmaceutical corporations avoided those charges by negotiating special price reductions or pledging new investments in American plants.
Those earlier levies completely spared generic drugs. According to data from the US Food and Drug Administration, generic remedies make up over 90 percent of all prescription medicines sold across the country.
Sources: Money.pl, Truth Social, US Food and Drug Administration
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