Trump announces import tariffs of up to 200% on generic medicines !

Indian pharmaceutical companies likely to suffer a major setback

Washington (US) – US President Donald Trump has announced that import tariffs of up to 200% will be imposed in stages on generic medicines imported into the United States. The decision is expected to deal a major blow to India’s pharmaceutical industry, which is known as one of the world’s leading exporters of medicines.

The new policy will come into effect from 1 August 2026. For the first two years (2026–2028), the import tariff on all generic medicines imported into the US will remain at 0%. In the third year (2028–2029), the import tariff on generic medicines will be raised directly to 100%, while in the fourth year (from 2029 onwards), it will be increased to 200%. Trump provided this information in a post on social media.

Trump’s decision aimed at reviving generic medicine production in the US

Trump said that the main objective of this policy was to restart the production of generic medicines in the US. Companies that fail to establish their projects and install the necessary machinery in the US within the stipulated timeframe will have to bear these tariffs. He said that the decision had been taken to protect the interests of the American people.

What will be the impact on India ?

India alone supplies approximately 40% of all generic medicines used in the US. Indian generic medicines are widely used in the US for treating high blood pressure, diabetes, cancer, depression, infectious diseases and mental health conditions. To avoid the import tariffs, Indian pharmaceutical manufacturers may now have to establish production facilities in the US itself or substantially increase the prices of medicines in the American market. This could directly put an additional financial burden on American consumers.