Trump Announces Phased Tariffs Up to 200% on Generic Drugs Starting 2028

President Trump announced July 21, 2026 that imported generic drugs will remain tariff-free through July 2028, after which a 100% tariff will apply for one year before rising to 200% thereafter, according to a Truth Social post reported by Fox Business. The White House said the policy will be implemented under Section 232 authority and is intended to push pharmaceutical manufacturers to relocate generic drug production to the United States; the existing tariff regime on patented, branded drugs is unchanged.

Generic drugs account for more than 90% of U.S. prescriptions, according to the FDA, and the industry relies heavily on imported active pharmaceutical ingredients. The Association for Accessible Medicines said it was still reviewing specifics but supports domestic-manufacturing incentives, while noting that purchasing and reimbursement structures also limit U.S. production growth.

The two-year runway before tariffs take effect gives manufacturers time to decide whether to build U.S. plants or continue importing and absorb the later duties; no legal challenges had been filed as of the announcement.