The Trump administration will not impose tariffs on generic drugs imported from other countries. Officials spent months debating whether to target most drugs sold in the U.S., but decided to focus only on brand-name medications.
Earlier, President Trump suggested a 100% tariff on brand-name drugs but did not mention generics. He later postponed the decision to allow drug companies more time to negotiate. India, the world’s largest supplier of generic drugs to the U.S., provides nearly half of all prescriptions, making it a key player in American healthcare. Domestic production accounts for just 30% of the market.
The Commerce Department had initially investigated tariffs on both generics and brand-name drugs, as well as drug ingredients. However, internal debates shifted the focus. Hardliners wanted tariffs to boost domestic manufacturing, while others warned that taxing generics could raise prices and cause shortages.
Major Indian companies like Cipla, Sun Pharmaceuticals, and Dr. Reddy’s supply essential medicines for conditions such as diabetes, high blood pressure, and cholesterol. Generic versions of drugs like Metformin, Atorvastatin, and Losartan help keep U.S. medications affordable.
President Trump confirmed that the 100% tariff will apply only to branded drugs, not to companies building manufacturing plants in the U.S.
