Key facts
- President Trump announced plans to impose tariffs on generic drugs starting August 2028.
- Existing policies on branded drugs will not change.
- Generic drugs were initially excluded from tariffs on overseas pharmaceutical production.
- Companies committing to U.S. manufacturing or striking drug pricing deals also avoided tariffs.
- The Office of the U.S. Trade Representative is investigating foreign governments' drug pricing practices.
President Trump announced his intention to impose tariffs on generic drugs beginning in August 2028, while maintaining his existing policy on branded pharmaceuticals. This announcement follows a Commerce Department investigation into the national security implications of overseas drug manufacturing, which previously resulted in tariffs of up to 100 percent on brand-name drugs. Generic drugs, however, were initially excluded from these duties, alongside exemptions for companies committed to building U.S. manufacturing facilities and those that negotiated drug pricing agreements with the White House. Major pharmaceutical companies such as Pfizer, Merck, Bristol Myers Squibb, and AstraZeneca also avoided tariffs after reaching their own pricing deals. The administration, through the Office of the U.S. Trade Representative, continues to focus on drug prices as a key component of addressing the cost of living for Americans. This includes pursuing trade investigations into foreign governments' pricing practices, such as one recently launched against Germany, and negotiating agreements like the one with the United Kingdom to adjust drug pricing thresholds and rebates. U.S. Trade Representative Jamieson Greer has indicated that other governments could face similar investigations in the future, prompting ongoing discussions.