Another failure in India? Trump says US may impose tariffs of up to 200% on generic drug imports. Here’s why | Today’s news
US President Donald Trump on Wednesday announced stiff tariffs on imported generic drugs from August 2028, saying the move was aimed at boosting the production of such pharmaceutical products.
Trump said: “Effective August 1, 2026, all generic drugs imported into the United States will continue to have a ZERO PERCENT TARIFF for two years, after which the TARIFF will increase to 100% for one year and 200% thereafter.
Why did Trump take this step?
In his post on the TRUTH social network, Trump said that this is being done “in order to RESTORE GENERIC pharmaceutical production in America, with a penalty for those companies that choose not to build plants and facilities within the deadline given to them.”
“The purpose of this Policy is to protect the people of the United States. The patented, branded or innovative drug policy that has been so successful will remain as it is. Pharmaceutical facilities are being built across the United States on an unprecedented scale,” Trump wrote.
On April 2, Trump signed an executive order imposing sweeping new tariffs on imported brand-name drugs. Under the order, a 100% tariff was imposed on brand-name drug imports unless manufacturers agreed to government-backed pricing arrangements or moved production to the United States.
Impact on India?
The move could affect India, which is the largest exporter of generic drugs to the US.
India is often called the “pharmacy of the world” because it supplies generic drugs to countries around the world.
In 2025, India will export pharmaceuticals worth USD 9.7 billion to the US, accounting for 38 percent of its total global pharmaceutical exports of USD 25.8 billion, a Global Trade Research Initiative report said, according to news agency PTI.
Indian generic drugs are widely prescribed for hypertension, diabetes, cancer, infectious diseases and mental health.
Agreement between India and USA
India has reportedly refused to fast-track an interim trade deal with the United States after recent talks failed to resolve key differences, insisting it will only sign a deal that serves its long-term interests, according to a Reuters analysis.
Despite months of discussions, India and the US were unable to finalize a limited trade deal during US Trade Representative Jamieson Greer’s visit to Delhi last month.
Reuters reported on July 13 that both sides expected an interim pact to be within reach, but talks on India’s core demands had stalled.
