US President Donald Trump on Wednesday announced steep tariffs on imported generic medicines, saying the move is aimed at bringing pharmaceutical manufacturing back to the United States. Under the plan, generic drugs imported into the US will continue to face a zero per cent tariff for two years from August 1, 2026, and then it will rise sharply to 100 per cent for one year and 200 per cent thereafter.
The announcement could have greater implications for India, the largest exporter of generic drugs to the US. In the global arena of trade, New Delhi is known as the 'pharmacy of the world' as it supplies generic medicines to countries across the globe.
As per a Global Trade Research Initiative report, India exported $9.7 billion worth of pharmaceuticals to the US in 2025, accounting for 38 per cent of its total global pharma exports of USD 25.8 billion. Indian generic medicines are widely prescribed for hypertension, diabetes, cancer, infectious diseases and mental health, underlining the importance of the US market for the sector.
Aligning with his US first policy, Trump said that the move will protect the interests of the people of the United States.
Talking about the development in a post on his Truth Social account, Trump wrote, " 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. 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.
Adding further, he wrote, "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."
Source: PTI