President Donald Trump plans to impose tariffs on generic drugs starting in August 2028, aiming to shift production to the United States.
Key facts
- •Tariffs on generic drugs are set to begin in August 2028.
- •The tariff rate is planned to reach 100 per cent in the first year and 200 per cent thereafter.
- •The administration aims to reshore generic pharmaceutical production to the US.
- •Patented and innovative drugs have been subject to tariffs since earlier this year.
- •Analysts suggest that shifting production to the US could more than double manufacturing costs.
US President Donald Trump announced plans on Tuesday to implement escalating tariffs on all generic drugs imported into the United States. The policy is scheduled to begin in August 2028, with rates reaching 100 per cent within the first year and rising to 200 per cent thereafter.
By the numbers
Policy Objectives and Rationale
The administration stated that the tariff increase is intended to encourage the reshoring of generic pharmaceutical production to the United States. This measure follows existing tariffs on patented, branded, and innovative drugs that were implemented earlier this year.
Industry and Economic Outlook
Analysts suggest the proposed tariffs may have limited impact on China, citing the economic impracticality of the plan and China's limited direct exposure in this specific segment. Bruce Liu, a senior partner at Simon-Kucher, noted that moving generic manufacturing to the US could more than double costs due to supply chain, manufacturing, and waste management expenses, potentially impacting US patients.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by SCMP Business.
