Our Bureau
Washington, DC
All generic drugs imported into the United States will continue to attract zero per cent tariffs for two years from August 1, 2026, after which tariffs will rise by up to 200 per cent, US President Donald J Trump announced on Wednesday.
Taking to Truth Social, Trump said, the policy is aimed at bringing generic pharmaceutical production back to the United States, with penalties for companies that choose not to establish manufacturing plants and equipment within the specified timeframe.
“Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for a two year period of time, after which the TARIFF will be raised to 100% for a one year period of time, and 200% thereafter,” he noted.
As one of the world’s largest suppliers of affordable generic medicines to the US, India could face significant consequences from the announcement.
Meanwhile, shares of Indian pharmaceutical companies came under selling pressure in opening trade on Wednesday after US President Donald Trump announced a phased tariff plan on imported generic medicines, with the Nifty Pharma index falling nearly 2 per cent.
Sun Pharmaceutical Industries, Cipla, Dr Reddy’s Laboratories, Lupin and Aurobindo Pharma were among the major losers, declining by up to around 2-2.5 per cent in early trade as investors reacted to the proposed tariffs.
The market reaction followed Trump’s announcement that imported generic medicines would remain tariff-free for two years, after which tariffs would rise to 100 per cent for one year and 200 per cent thereafter as part of efforts to encourage pharmaceutical manufacturing in the United States.
Trump further stated, the objective is to protect the American people, while the existing policy on patented, branded and innovative drugs will remain unchanged.
“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,” he noted.
Additionally, pharmaceutical manufacturing facilities are currently being built across the United States at an unprecedented pace, he noted in his post.
“Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America,” he said.
In a seperate development, the US President signed a proclamation under Section 232 of the Trade Expansion Act of 1962 to adjust aluminium imports, citing national security concerns and seeking to boost investment in the domestic aluminium industry. As per the fact sheet release by the White House, the tariffs on imported aluminium aims to protect the country’s defence and defence-related industrial base.
Additionally, the proclamation authorizes and directs the Secretary of Commerce to establish an incentive program for companies that will invest in building, expanding, or refurbishing aluminium smelters in the US.
