Trump Threatens to Impose 100 Percent Tariffs on Generic Drugs

Here's what it's all about

• U.S. President Donald Trump wants to use the threat of new tariffs to pressure pharmaceutical companies into manufacturing drugs in the United States.
• Starting in the summer of 2028, a special tax of 100 percent will be levied on so-called generic drugs for an initial period of one year; thereafter, the rate is set to rise to 200 percent
• Until now, generic drugs were exempt from the US tariffs on medications announced in April of this year, which can be as high as 100 percent.
• The United States is the most important market for Swiss pharmaceutical companies.

Summary created with

U.S. President Donald Trump wants to use the threat of new tariffs to force pharmaceutical companies to manufacture drugs in the U.S. Starting in the summer of 2028, special levies of 100 percent are to be imposed on so-called generic drugs for an initial period of one year; thereafter, the rate is to rise to 200 percent, as Trump announced on his social media platform Truth Social.

“Starting August 1, 2026, a zero percent tariff will continue to apply to all generic drugs imported into the United States for a period of two years; after that, the tariff will be raised to 100 percent for a period of one year and then to 200 percent,” Trump wrote. In his post, the Republican left open the question of what legal basis he intends to cite for the threatened tariffs.

Generic drugs are medications that are identical to brand-name drugs but are usually significantly less expensive. Until now, generic drugs were exempt from the US tariffs on medications announced in April of this year, which can be as high as 100 percent. However, the U.S. president had given his Secretary of Commerce, Howard Lutnick, one year to reassess the situation and, if necessary, recommend new measures regarding the import of generic drugs.

Sonst drohen Vergeltungsmassnahmen

Trump stellt Schweizer Pharma-Riesen ein Ultimatum

Other medications are not affected

The measure aims to “bring generic drug production back to the United States,” and companies that decide not to build facilities within the deadline set for them will be penalized, the U.S. president continued. The goal of this policy is “to protect the people of the United States.” Meanwhile, the measures already in place regarding other medications remain in effect unchanged.

Trump wants to bring down the comparatively high drug prices in the U.S. He accuses manufacturers of distorting competition at the expense of U.S. companies by producing drugs more cheaply overseas. Research in the pharmaceutical sector is particularly costly in the U.S.

The United States is the most important market for Swiss pharmaceutical companies. In connection with the initial announcement of tariffs on imports of patented drugs, a statement was issued at White House executive order in early April 2026 that a reduced tariff rate of 15 percent would apply to Swiss pharmaceutical exports.

100 Prozent Zoll auf Medikamente

Das bedeutet Trumps Pharma-Hammer für die Schweiz

Bern: “Additional Burden”

At the time, the cantonal government described the imposition of additional U.S. tariffs on pharmaceutical products as “an additional burden on the Swiss pharmaceutical industry,” according to a statement issued by the Federal Department of Economic Affairs, Education, and Research (WBF) in response to an inquiry from Keystone-SDA.