Trump Announces Two-Year Tariff Exemption for Generic Drugs, Followed by 100% and 200% Tariffs

U.S. President Donald Trump announced via social media on the 21st (local time) that all generic drugs imported into the U.S. will remain tariff-free for two years starting in August, after which a 100% tariff will be imposed for one year, followed by a 200% tariff thereafter.

"This is to bring generic drug production back to the United States," he explained, adding that it is a measure to penalize companies that decide not to build factories and production facilities in the U.S. within the given timeframe.

However, President Trump stated that existing policies will be maintained for patented original drugs, branded medications, and innovative new drugs.

According to the U.S. Food and Drug Administration (FDA), more than 90% of the drugs sold in the U.S. are generics.

In April, President Trump signed an executive order imposing a 100% tariff on branded drugs imported into the U.S. unless manufacturers comply with government drug price negotiations or commit to domestic production.

However, countries that have trade agreements with the U.S., including South Korea, the European Union (EU), Japan, and Switzerland, were subject to a 15% tariff on the pharmaceuticals they produce.

At the time, the U.S. decided not to impose tariffs on generic drugs, biosimilars, and related raw materials, with plans to review them after one year.

India, the largest exporter of generic drugs to the U.S., included a provision in its trade agreement signed with the U.S. in February stating that generic drugs and raw materials would be subject to the outcomes of negotiations.
※ Please note: This article was translated by AI and may contain errors.