Beginning in August 2028, the US has imposed high taxes on imported generic medications. US President Donald Trump claimed that the action was intended to onshore the manufacturing of these medicinal goods. India, the country that exports the most generic medications to the United States, is probably going to be impacted by the action.
Trump stated on his Truth Social platform that the phased tariff plan will take effect on August 1 and that all generic medications imported into the US will continue to be subject to a zero percent levy for the first two years. According to him, the tariff will go to 100% for the third year and then 200% after that.
“Effective August 1st, 2026, all generic drugs being brought into the United States will continue to have a tariff of zero percent for two years, after which the tariff will be raised to 100 per cent for one year, and 200 per cent thereafter,” Trump wrote. “This is done in order to RESHORE generic pharmaceutical production into America, with a penalty to those companies that decide not to build plants and equipment within the stated period of time given to them,” he added.
“The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is,” the president declared, stating that the goal of this policy is to safeguard American citizens.
India is frequently referred to be the “pharmacy of the world” since it provides generic medications to nations all over the world. Indian generic medications account for around 40% of the total volume in the United States. According to a Global Trade Research Initiative research, India shipped USD 9.7 billion worth of pharmaceuticals to the US in the fiscal year 2024–2025, making up 38% of its total global pharmaceutical exports of USD 25.8 billion.
However, it was immediately unclear how Indian pharmaceutical industries would be impacted by Trump’s new tariff threats. India would “receive negotiated outcomes with respect to generic pharmaceuticals and ingredients,” according to a trade agreement reached in February between the US and India.
However, his prior threats against tariff pharmaceutical suppliers have jeopardized low-cost Indian supplies. Indian generic medications are frequently used to treat mental health issues, cancer, diabetes, depression, hypertension, and infectious disorders. According to a Financial Post study, just two Indian businesses, Glenmark Pharmaceuticals Ltd. and Lupin Ltd., produced around 65% of all birth control prescriptions in the US in 2024.
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