Trump announces phased tariffs on generic drugs; 200% levy from 2029 may hit India exports

Mangalore Today News Network

Washington, Jul 22, 2026: US President Donald Trump on Wednesday announced a phased tariff policy on imported generic medicines, with a 200 per cent tariff set to take effect after a transition period ending in August 2028, a move aimed at boosting domestic pharmaceutical manufacturing.

In a post on Truth Social, Trump said imported generic drugs will continue to face zero tariffs from August 1, 2026, for two years. The tariff will then increase to 100 per cent for one year, followed by a 200 per cent levy thereafter.

Trump said the policy is intended to encourage pharmaceutical companies to relocate manufacturing to the United States by imposing higher duties on firms that continue producing generic medicines abroad.

He clarified that the existing policy governing patented, branded and innovative medicines would remain unchanged.

The decision is expected to have significant implications for India, the world’s largest supplier of generic medicines and a major exporter to the US market.

According to the Global Trade Research Initiative (GTRI), India exported pharmaceutical products worth USD 9.7 billion to the US in 2025, accounting for 38 per cent of its total global pharmaceutical exports valued at USD 25.8 billion.

Indian-made generic medicines are widely used in the US to treat conditions such as hypertension, diabetes, cancer, infectious diseases and mental health disorders.

Industry experts believe the phased tariff regime could significantly affect India’s pharmaceutical exports to the United States if companies do not shift production to the US within the stipulated timeframe.