Trump says generic drugs to face no US tariffs for 2 years, then 100% and 200% tariffs later (updated)

Pfizer

22/07/2026 24:39

Adds quotes and background
By Kanishka Singh

    WASHINGTON, July 21 (Reuters) - President Donald Trump said on Tuesday all generic drugs being brought into the U.S. will continue having a tariff of 0% for two years starting from August 1, after which the tariff rate will be raised to 100% for one year and to 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," Trump said in a post on Truth Social.
Trump ​has been pressuring drugmakers ​through his most-favored-nation drug ⁠pricing policy to lower prices to what people pay in other high-income countries.
More than 90% of medicines sold in the U.S. are generics, according to the U.S. Food and Drug Administration.
The policy on patented, branded, or innovative drugs will remain unchanged, Trump said. 
The world's biggest drugmakers signed deals with the U.S. government last year that exempted billions of dollars of drugs from tariffs. 
Trump signed an executive order in April imposing 100% tariffs on branded pharmaceuticals imported into the U.S. unless manufacturers agree to government drug pricing deals or commit to making their products domestically.


 (Reporting by Kanishka Singh in Washington; Editing by Tom Hogue and Sonali Paul)
 ((Kanishka.Singh@thomsonreuters.com; +12024508248;))