President Donald Trump plans to increase tariffs on generic drugs to 100% by 2028 to encourage domestic production.
President Donald Trump announced that the United States will raise tariffs on generic drugs to 100% in 2028, followed by a 200% increase thereafter. The administration aims to reshore generic pharmaceutical production into America by penalizing companies that fail to build domestic plants and equipment within the designated timeframe. This move significantly impacts India, which currently provides nearly 50% of the generic medicines consumed in the United States. The strategy follows a broader push by the administration to utilize tariffs as a tool for industrial growth. Additionally, the administration is preparing to unleash fresh tariffs on dozens of countries this week as a temporary 10% global tariff is set to expire. While the immediate new duties are expected to be comparable to current levels, the administration is conducting investigations to secure the legal authority to propose even higher duties. These measures reflect a consistent effort by the administration to strengthen American manufacturing and reduce reliance on foreign suppliers.