Trump sets tariffs on imported generic drugs

·

·

1–2 minutes

Summary

Trump said imported generic drugs will keep a 0% tariff for two years from Aug. 1 before rates rise to 100% and then 200%.

Why this matters

The announcement affects a category that makes up more than 90% of medicines sold in the United States, according to the Food and Drug Administration. It also signals a broader push to shift drug manufacturing to the United States while maintaining existing policy for branded medicines.

President Donald Trump said Tuesday that generic drugs imported into the United States will face a 0% tariff for two years starting Aug. 1, followed by a 100% tariff for one year and a 200% tariff after that.

“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 also pressed drugmakers through his most-favored-nation drug pricing policy to lower prices to levels paid in other high-income countries.

More than 90% of medicines sold in the United States are generics, according to the U.S. Food and Drug Administration.

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 United States unless manufacturers agree to government drug pricing deals or commit to making their products domestically.

  • FIFA to investigate Argentina-Spain final clash

    Four Argentina players, including substitute Paredes, were booked during the match, along with head coach Lionel Scaloni.

    Full story +

  • Zelensky removes army chief after protest backlash

    The change followed Zelensky’s firing last week of Fedorov, 35, who had built a reputation for promoting technology and new recruitment approaches, but had clashed with members of Ukraine’s defense establishment, including Syrskyi.

    Full story +

  • U.S. says latest Iran strikes ended after 11th night

    On Monday, President Donald Trump said he would retaliate against Iran after a deadly weekend for U.S. troops.

    Full story +

  • France backs François-Noël Buffet for rights post

    While the Defender of Rights has no judicial or legislative power, the office can influence court proceedings and disputes with public authorities. 

    Full story +

  • Iran warns Bulgaria over possible U.S. airbase use

    Bulgaria’s government said it would seek parliamentary approval to station U.S. tanker aircraft at Bezmer military facility.

    Full story +

  • Houthis Threaten Bab el-Mandeb, Raising Trade Risks

    They said they forced six ships to reroute Tuesday, though there was no independent confirmation.

    Full story +

  • N.C. attorney general opposes Duke rate proposal

    Under the proposal, residential rates would rise 5.9% in the first year and 3.6% in the second, for cumulative growth of 9.5%, according to Duke spokesperson Bill Norton.

    Full story +

  • Jay Feely wins GOP primary in Arizona House race

    Feely is seeking to replace retiring Republican Rep. David Schweikert, who is running for Arizona governor, in the metro Phoenix-based district.

    Full story +

  • ,

    Uninsured ER visits at Virginia hospitals rose 8%

    A recent state report found 13 rural hospitals in Virginia at risk of closure as coverage changes and federal policy shifts affect hospital finances.

    Full story +

  • New Jersey says 6,600 noncitizens were registered

    The state’s preliminary analysis found that fewer than 400 of those erroneously registered had voted.

    Full story +