The most common prescription drugs you pick up at the pharmacy counter or fill via mail order will likely get more expensive under President Donald Trump's plan to assess a 100% tariff on imported generic drugs in two years.
In a social media post, Trump said all imported generic drugs will be tariff-free for another two years before a 100% tariff would kick in Aug. 1, 2028, and a 200% tariff one year later.
"This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them," Trump said in a post on his Truth Social platform July 21.
Tariffs will raise prices for generics
If the tariffs are implemented, experts warn consumers probably will pay
more for generic drugs, which account for 90% of prescription medications sold in the United States. Health insurance companies and employers that sponsor health benefits will likely absorb higher costs, which are typically passed to consumers through higher insurance premiums, copays and deductibles.
Consumers often turn to generic drugs to get cheaper medications that are comparable to pricier brand-name drugs. Drug pricing experts warn assessing tariffs on generics will make the most commonly used medications more expensive.
"Imposing massive tariffs on generic medicines risks making lower-cost generic drugs millions of Americans rely on more expensive and harder to access," said Merith Basey, CEO of Patients for Affordable Drugs. "Tariffs of this magnitude could have enormous consequences − raising costs, worsening shortages and putting access to lifesaving medicines at risk."
Trump has touted negotiated deals with 17 drug companies that have agreed to most-favored-nation pricing deals representing 80% of brand-name drugs marketed in the United States. Those deals, however, did not include generic drugs.
Industry groups also have warned generic drug manufacturers would have a difficult time affording tariff costs. When the Trump administration in 2025 announced tariffs for goods imported from Canada, Mexico and China, Association for Accessible Medicines CEO John Murphy III said generic manufacturers "simply can’t absorb new costs."
After Trump's announcement July 21, Murphy said his organization needs to better understand the terms. He said his group would pursue policies that "support and stabilize both the industry and the access necessary to ensure patients have reliable options for affordable medicines."
Murphy added that generic manufacturing has "grown significantly in the U.S. over the past two years" but warned reimbursement for generics is "a significant inhibitor to the growth of this sector."
Shift to domestic manufacturing comes at a cost
Vontobel analyst Stefan Schneider said the United States seeks to reverse the shift of generic drug production to lower-cost countries, but bringing manufacturing back would likely raise generic drug prices in the United States, Reuters reported.
Schneider added that any new rules would predominantly affect China and India, where most generic drugs and drug ingredients are manufactured.
The United States has more than 1,400 manufacturing sites designed to finish medications into a pill, capsule or liquid vial, conduct quality control and complete packaging and labeling. But just 230 U.S. factories make active pharmaceutical ingredients, according to data from QYOBO, a drug intelligence platform.
By comparison, QYOBO said, there are 524 pharmaceutical ingredient factories in China, 564 in India and 670 in Europe. The U.S. pharmaceutical sites often are smaller and make fewer products than the large plants in India and China.
Also, ingredients for nearly half of drugs the Department of Health and Human Services Office of the Assistant Secretary for Preparedness and Response has designated as essential medicines are made domestically. But U.S. sites do not produce ingredients for 40 of 83 essential medicines, according to QYOBO.
This article originally appeared on USA TODAY: Generic drug tariffs set to skyrocket in 2028. Consumers could feel impact
