Trump announces 100% tariffs on imported generic pharmaceutical drugs
President Donald Trump said on Tuesday that all generic drugs brought into the US will continue to have 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-favoured-nation drug pricing policy to lower prices to what people pay in other high-income countries.
More than 90% of medicines sold in the US are generics, according to the US 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 US 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 US unless manufacturers agree to government drug pricing deals or commit to making their products domestically.