Trump Threatens 100-200% Tariffs on Generic Drug Imports After 2-Year Duty-Free Period

US President Donald Trump said the US will impose tariffs of 100% and later 200% on generic drug imports after maintaining a zero tariff for two years from August 1, 2026 as part of a plan to encourage pharmaceutical manufacturing in the country. The US is India's largest pharmaceutical export market, accounting for about one-third of the country's drug exports.

Under the policy, generic drugs imported into the US will continue to attract a zero tariff for two years. The tariff will then rise to 100% for one year and 200% thereafter.

Companies that do not establish manufacturing facilities in the US during the transition period will face the higher tariffs, Trump said in a post on Truth Social.

The policy on patented, branded and innovative drugs will remain unchanged, he said.

India is also one of the world's largest suppliers of generic medicines, with companies such as Sun Pharma, Dr Reddy's Laboratories, Cipla, Lupin, Aurobindo Pharma and Zydus Lifesciences deriving a significant share of their revenue from the US market.