Trump plans 100% tariffs on imported generic drugs. Here's what experts say. - CBS News. Imported generic drugs could face tariffs of up to 100% beginning in 2028 under a plan announced Tuesday by President Trump, who said the measure is intended to push manufacturers to move production to the U.S.
Trump announced Tuesday the 100% tariffs on generic drugmakers will begin in August 2028 and increase to 200% after one year, according to the latest reporting on the story.
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Available information indicates that Health policy experts said they are skeptical the tariffs alone would persuade generic drug manufacturers to relocate production to the U.S.
Here's what experts say about the tariff's potential impact, in a development tied to the same story.
Companies will also need to consider whether the threat of tariffs is enough of an incentive to build manufacturing facilities in the U.S., where production expenses are higher, experts said.
Trump's plan provides a two-year runway for drug manufacturers to reshore production, White House spokesman Kush Desai told CBS News, who pointed to other administration policies such as full equipment expensing as aiding in the transition.
"The President's resounding success securing firm reshoring plans from global drugmakers as part of our most-favored-nations deals and Section 232 tariff program for branded drugs is proof that this administration has a track record of success to get critical manufacturing back into the United States," he said in an email.
Photo by SAUL LOEB /AFP via Getty ImagesArticle contentThe Trump administration’s announcement of a new round of tariffs on Canadian goods may be less of a reprisal over trade barriers and more about gaining leverage in CUSMA negotiations, trade watchers suggest.
Generic drug manufacturers have slim margins, which could limit their ability to absorb the impact of tariffs, said Mariana Socal, an associate professor at the Johns Hopkins Bloomberg School of Public Health.
Teva Pharmaceuticals, an Israel-based company that's one of the world's largest generic drug producers, declined to comment on whether the company plans to expand manufacturing operations in the U.S.
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Generic medications are manufactured with the same active ingredients as brand-name drugs but typically cost much less.
If consumers did see higher prices, the increases would be relatively modest because generic drugs are generally inexpensive, Wosińska said, according to the latest reporting on the story.
Available information indicates that The two-year timeline for reshoring generic drug production may be difficult to meet, experts said.
Trump lacked the authority to impose certain tariffs, invalidating a large portion of the levies he had imposed, in a development tied to the same story.
Separately, She cited research she conducted showing that manufacturing facilities that produce generic drugs for the U.S.
"We appreciate the administration's objective of strengthening domestic production and supply chain resilience for medicines in the United States," Sandoz CEO Richard Saynor said in a statement to CBS News.
There is not going to be enough capacity if the tariffs were to come in, and manufacturers are just going to walk out of the market.", according to the latest reporting on the story.
