Trump: For the first two years, there will be no tariffs on imported generic drugs. Subsequently, the tariffs will gradually increase to 200%

US President Trump announced that starting from August 1st, all imported generic drugs from the US will continue to enjoy a 0% tariff for two years. After two years, the tariff rate for generic drugs will increase to 100% for one year, and then it will be raised to 200% thereafter.

Reuters reported that on Tuesday (July 21), Trump posted on the social media platform Truth Social: "This measure is aimed at bringing back the production of generic drugs to the United States and punishing those companies that do not build factories and purchase equipment within the stipulated time frame in the United States."

Trump said that the policies regarding patented drugs, brand-name drugs or innovative drugs will remain unchanged.

Trump has been pressuring pharmaceutical companies with the most-favored-nation drug pricing policy, forcing them to lower the prices of drugs in the US to a level comparable to that in other high-income countries.

According to data from the US Food and Drug Administration (FDA), over 90% of the drugs sold in the United States are generic drugs.

Last year, several major multinational pharmaceutical companies worldwide, including Pfizer, Merck, Roche, Novartis, and Eli Lilly, signed agreements with the Trump administration. In exchange for obtaining billions of dollars' worth of drug tariff exemptions, these companies promised to set up factories in the United States or significantly reduce the prices of some drugs in the country.

In April this year, Trump signed an executive order, imposing a 100% tariff on imported brand-name drugs from the United States, unless the drug manufacturers agreed to reach a drug pricing agreement with the US government or committed to producing the drugs in the US.