Quick Take: Trump announces 100%+ tariff on generic drugs imported starting in 2028

Research evidence excerpt

Quick Take: Trump announces 100%+ tariff on generic drugs imported starting in 2028

22 July 2026

Global Biopharma and Life Science Tools

Quick Take: Trump announces 100%+ tariff on generic drugs

imported starting in 2028

On Tuesday evening President Trump posted a new plan to levy tariffs on generic drugs to Eve Burstein

+1 917 344 8313 the Truth Social platform (Exhibit 1). According to the post a 100% tariff will start on August

eve.burstein@bernsteinsg.com 1st 2028, and the rate will increase to 200% on August 1st 2029. The policy on branded /

originator drugs remains unchanged.

Courtney Breen

+1 917 344 8407

courtney.breen@bernsteinsg.com There is opportunity to scale up generic production in the US relatively quickly.

A 2022 survey of generic drug manufacturers found that the 37 surveyed generic

Nandan Kulkarni manufacturing sites in the US had aggregate excess capacity of nearly 50%. According to

+91 22 6842 1436 the survey, manufacturers indicated 57% of the generic sites could be at full production

nandan.kulkarni@bernsteinsg.com

within one year, and 86% within two years; as the author write, “These are existing FDA-

inspected and approved, cGMP plants, requiring limited, if any upgrades necessary to meet Woody Polglase

+1 917 344 8314 minimum requirements for the methods, facilities, and controls used in manufacturing,

woody.polglase@bernsteinsg.com processing, and packing of a drug product.” Additionally, we believe large Indian biopharma

companies, which supply about 65% of U.S. generics volumes, can expand capacity as

Shirsh Sawarna most already operate a network of manufacturing plants in the U.S.

+91 226 842 1492

shirsh.sawarna@bernsteinsg.com

However, this scale-up would not be sufficient to meet demand in this timeframe.