Trump’s 200% generic tariff threat would imperil Americans: Indian pharma

23 JULY 2026

U.S. President Donald Trump has given generic pharmaceutical companies a two-year window to establish manufacturing facilities in the United States, warning that products imported after August 2028 could face tariffs of up to 200%.
The announcement, made through a social media post, has significant implications for India, which sends more than a third of its pharmaceutical exports to the U.S.
While Indian drugmakers sought to strike a cautious note, they warned that higher tariffs would ultimately increase medicine costs for American consumers.
Mr. Trump said the measure is intended to encourage generic drug production in the U.S. and reduce dependence on overseas supply chains.
“Effective August 1, 2026, all generic drugs being brought into the United States will continue to have a tariff of zero per cent for a two-year period of time, after which the tariff will be raised to 100% for a one-year period of time, and 200% thereafter,” he said.
The announcement rattled pharmaceutical stocks.
India exported pharmaceutical products worth $25.8 billion in 2025, of which $9.7 billion, or 37.7%, went to the U.S. its largest overseas market.
Indian firms account for nearly 47% of all generic prescriptions dispensed in the U.S., making India the largest supplier of affordable generic medicines.
Despite this dominance, generics’ low pricing means India’s share of the value of U.S. generic imports is estimated at only about 30%.