Key facts
- The European Commission expects European generic medicines to be exempt from U.S. President Donald Trump's planned tariffs.
- Trump announced tariffs of 100% on generic drugs starting August 2028, potentially rising to 200% in 2029.
- A 2025 EU-U.S. trade deal committed Washington to a zero-tariff rate for European generic drugs.
- The EU generics lobby warned the tariffs could cause significant medicine shortages in the U.S.
- The U.S. has also raised concerns with Germany and France over their drug pricing policies.
The European Commission has indicated that European generic medicines are expected to be exempt from new U.S. tariffs announced by President Donald Trump. This expectation is based on a transatlantic trade deal struck in 2025, which reportedly committed the U.S. to a zero-tariff rate for these products. Trump's administration had announced plans for a 100 percent tariff on generic drugs starting in August 2028, with a potential increase to 200 percent in 2029, aiming to boost domestic pharmaceutical production.
According to Olof Gill, deputy chief spokesperson for the European Commission, the U.S. committed under the deal to exempt generic medicines from tariffs, meaning they would continue to be subject to the most-favored-nation rate of 0 percent. Innovative drugs, however, remain subject to a 15 percent tariff. The EU views this agreement as preserving stability in a key strategic sector.
Despite the EU's position, the generics lobby group Medicines for Europe warned that such measures could lead to significant medicine shortages in the United States. Swiss manufacturer Sandoz noted it was too early to fully assess the implications. The U.S. has also engaged in discussions with Germany and France regarding their pharmaceutical pricing policies.