Trump Plans to Impose Tariffs on Generic Drugs

Nearly all of the largest brand-name drugmakers have announced plans to build or expand U.S. factories. In the generics industry, where companies often operate with razor-thin margins, only a few companies have announced such plans.

Generic drugs, such as statins and antibiotics, account for about 90 percent of Americans’ prescriptions. They are most often manufactured in India, with heavy reliance on China for ingredients. Republicans and Democrats have identified that as a national security vulnerability.

Doctors and supply chain experts have been sharply critical of the idea of taxing imported generics, saying it threatened to raise costs, spur rationing and lead to shortages of crucial drugs. Until now, the administration had said that generic drugs would be exempted from tariffs.

John Murphy III, chief executive of the Association for Accessible Medicines, a trade group for generic drug makers, said in a statement on Tuesday evening that his industry will work with the administration and lawmakers “to pursue solutions that restore the generics industry to growth and to prioritize its place as a critical national security asset here in the U.S.”

Article source: https://www.nytimes.com/2026/07/21/business/trump-tariffs-generic-drugs.html