100% tariff on generic medicines starting in 2028, announces Trump
WHAT HAPPENED
The US plans to impose a 100% tariff on imported generic medicines starting August 1, 2028, and 200% from August 2029. Until then, the rate will be 0%.
WHY IT MATTERS
India manufactures about half of the generics used in the US. The tariff aims to force pharmaceutical companies to produce within the US, but it could raise medicine prices, affect pharmacies, and pressure insurers.
AND FOR YOUR PORTFOLIO
The price at the pharmacy has not changed yet: there are two years of grace, and the plan could be modified. For long-term investors, the focus is on which companies build plants in the US and which absorb or pass on the extra cost.
💬 TELL IT LIKE THIS
“The US wants generics to be manufactured within its territory: if they come from abroad, they could cost double starting in 2028 and triple from 2029.”