As the pharmaceutical industry prepares for the first wave of tariffs on patented pharmaceuticals to apply, President Trump forecasts a tariff regime applicable to generic pharmaceuticals to begin in August 2028.

Introduction

In a Truth Social post on July 21, 2026, President Trump outlined a tiered timeline for imposing tariffs on generic pharmaceuticals. The scheme envisages the United States maintaining a zero-percent tariff rate on generics for the next two years. As of August 2028, a 100 percent tariff rate would apply, rising to 200 percent in August 2029. 

Generics Tariffs – Possible Rebates for Onshoring Production

The President's social media post states that the proposed tariffs on generic pharmaceuticals are designed to promote reshoring of generic pharmaceutical production to the United States. As with the patented pharmaceutical regime, the President also indicated that generics producers who decide to build "[p]lant[s] and [e]quipment" in the country may be able to benefit from tariff mitigation. Specific details of this proposal are not yet available.

Patented Pharmaceutical Tariffs on the Horizon

The President's post comes as the United States' first set of tariffs specific to patented pharmaceuticals are set to come online for seventeen large pharmaceutical manufacturers on July 31, 2026, and for all other covered importers on September 29, 2026.

In April 2026, the Trump administration announced up to 100% tariffs on patented pharmaceuticals under Section 232 of the Trade Expansion Act of 1962, which allows tariffs to be imposed following an investigation and determination that specific imports threaten national security. Under the scheme, companies with plans approved by the U.S. Secretary of Commerce to onshore production and/or agreements committing to MFN pricing with the U.S. Department of Health and Human Services benefit from reduced tariff rates.

Looking Ahead

The next step is for the administration formally to impose the tariffs outlined in the President's Truth Social post. The delayed timeline for the generic pharmaceutical tariffs to come online gives generics manufacturers some runway to prepare and to determine their next steps—invest in the United States, develop onshoring plans, or modify their supply and manufacturing structure. Our team will continue to monitor relevant trade developments across the pharmaceuticals sphere.

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