US Tariffs on Generic Medicines

US President Donald Trump’s latest announcement on generic drug tariffs talks of 0% tariffs for two years (starting August 1, 2026), followed by 100% in Year 3, and 200% thereafter. This is seen as an effort to reshore generic manufacturing to the US and the phased structure gives international drugmakers a brief window to adapt before punitive import duties kick in. For the pharmacy of the world, the stakes could not be higher. With nearly 38% of India's global pharma exports ($9.7B+) bound for the US and filling almost half of all American generic prescriptions, Indian exporters face a critical structural shift.While the two-year grace period offers temporary relief, we cannot escape making hard strategic decisions on capital allocation and global supply chains. To protect market share and operating margins in thin-margin generics, Indian pharmaceutical majors will likely need to accelerate US-based manufacturing, expand CDMO partnerships, or navigate trade negotiations for exemptions. In the long run, this policy will test the agility of Indian drugmakers and reshape US healthcare economics, as absorbing high tariffs or building domestic plants could ultimately drive up drug prices for American consumers.“My Pharma Reviews - The Podcast” is now available for you to listen on your favourite podcasting apps like Spotify and Apple. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit mypharmareviews.substack.com