Trump Announces Zero Tariff Window for Generic Drug Imports, Signals Up to 200% Hike Later

All generic drugs imported into the United States will continue to attract zero per cent tariffs for two years from August 1, 2026, after which tariffs will rise by up to 200 per cent, US President Donald J Trump announced on Wednesday.

Taking to Truth Social, Trump said, the policy is aimed at bringing generic pharmaceutical production back to the United States, with penalties for companies that choose not to establish manufacturing plants and equipment within the specified timeframe.

He further stated, the objective is to protect the American people, while the existing policy on patented, branded and innovative drugs will remain unchanged.

"The objective of this Policy is to protect the people of the United States. The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is," he noted.

Additionally, pharmaceutical manufacturing facilities are currently being built across the United States at an unprecedented pace, he noted in his post.

" Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America," he said.

How does Trump’s policy on aluminium imports aim to boost US domestic industry and national security?

The US President signed a proclamation under Section 232 of the Trade Expansion Act of 1962 to adjust aluminium imports, citing national security concerns and seeking to boost investment in the domestic aluminium industry.

As per the fact sheet released by the White House, the tariffs on imported aluminium aims to protect the country's defence and defence-related industrial base.

Additionally, the proclamation authorizes and directs the Secretary of Commerce to establish an incentive program for companies that will invest in building, expanding, or refurbishing aluminium smelters in the US.

(With inputs from ANI)