US generic drug imports will face 0% tariffs for two years, then rise to 100% and 200% starting in 2026, targeting affordability.
The Trump administration announced a two-year tariff exemption for generic drugs imported into the US, followed by steep increases to 100% and then 200%. The move extends tariffs to generics, which account for most US prescriptions and operate on thin margins, after previously exempting them in April’s Section 232 proclamation.
Earlier tariffs targeted higher-margin branded pharmaceuticals, but the new policy shifts focus to generics, which could significantly impact drug affordability. The delay provides time for manufacturers and importers to adjust supply chains before the 2026 and 2027 rate hikes take effect.
While immediate market reactions may be limited, the policy signals a broader push to include the entire pharmaceutical sector under tariffs by 2028, potentially disrupting pricing and supply dynamics.