Trump Announces Phased Tariff Plan on Generic Drug Imports: 0% Until 2028, Then 100% and 200%

Feb 6, 2026

President Donald Trump announced a phased tariff plan on imported generic drugs, keeping rates at 0% until August 2028, when a 100% tariff will take effect, rising to 200% in 2029. The policy, aimed at forcing manufacturers to reshore production to the U.S., faces skepticism from health experts. Critics warn the two-year timeline is unrealistic and could trigger severe drug shortages and price hikes, given that the U.S. relies on India and China for 90% of its generic prescriptions.

Trump generic drug tariffs

▪The tariff policy on patented, branded, or innovative drugs will remain unchanged under the new generic drug tariff plan.
▪The phased tariff schedule is designed to pressure generic pharmaceutical manufacturers to reshore their production facilities to the United States.
▪The Trump administration intends to use Section 232 of the Trade Expansion Act of 1962 to impose the generic drug tariffs.
▪President Donald Trump announced that imported generic drugs will face a 0% tariff starting August 1, 2026, for two years, rising to 100% in August 2028 and 200% in August 2029.

Overseas pharmaceutical manufacturing dependence

▪The United States has 1,400 drug finishing sites but only 230 factories that manufacture active pharmaceutical ingredients, compared to 524 in China and 564 in India.
▪Pharmaceutical exports from India to the United States totaled $10.5 billion during the 2024-2025 fiscal year.
▪India supplies approximately 50% of the generic drug prescriptions filled in the United States.
▪Generic drugs account for approximately 90% of all prescriptions filled in the United States.

Predicted drug shortages

▪Health policy experts warn that the proposed tariffs could cause generic drug manufacturers to exit the United States market, leading to severe drug shortages.
▪Industry experts warn that the two-year timeline is insufficient for domestic manufacturers to build the specialized infrastructure required to meet United States generic drug demand.

Expert opposition to policy

▪Sandoz CEO Richard Saynor stated that policymakers and the pharmaceutical industry must work together to create a sustainable framework for long-term investment in generic medicines.
▪Association for Accessible Medicines CEO John Murphy III stated that generic manufacturers cannot easily absorb new costs and that current reimbursement structures inhibit domestic sector growth.
▪Health policy experts and industry groups argue that generic drug manufacturers operate on thin margins and will likely pass tariff costs directly to consumers.

Specific affected medications

▪Two India-based companies, Glenmark Pharmaceuticals Ltd. and Lupin Ltd., manufactured approximately 65% of all birth control pill prescriptions in the United States in 2024.
▪China supplies the United States with approximately 95% of imported ibuprofen, 91% of hydrocortisone, 70% of acetaminophen, and 45% of penicillin.