In recent years, the United States has continuously restructured its domestic pharmaceutical industry chain through tariff policy adjustments, expanding the scope of trade protection from raw materials and patented drugs to generic drugs.
On July 21, local time, Trump officially announced a new tiered tariff policy for imported generic drugs, with a two-year zero-tariff buffer followed by a gradual increase to 200%.
According to Trump's public statements on social media, this new generic drug tariff policy has clear timelines and tax standards, with a gradual and progressively stronger approach. The specific implementation plan will officially begin on August 1, 2026: Phase 1 (two-year buffer period): Full zero tariffs. For two consecutive years starting August 1, 2026, all generic drugs imported into the United States will maintain the existing zero-tariff policy. This phase is a transition period reserved by the United States for overseas pharmaceutical companies to adjust production capacity and relocate their supply chains, giving companies ample time to adapt to the new regulations and adjust their overseas layout, avoiding market turmoil caused by the sudden implementation of the policy.
Phase Two (Year 3): After a two-year grace period following the imposition of a 100% tariff, a one-year period will be implemented to impose a 100% tariff on imported generic drugs. This will directly double import costs, completely shattering the price advantage of overseas generic drugs and significantly compressing the profit margins of imported pharmaceutical companies.
Phase Three (From Year 4 onwards): Tariffs will be capped at 200%. After the one-year 100% tariff period expires, tariffs will be raised again to 200% and implemented long-term. This is the core high-pressure clause of the new policy, aiming to force overseas companies that have not established factories and started production in the United States to completely withdraw from the US market through extreme trade cost pressure.
It is worth noting that this new policy only targets imported generic drugs; patented drugs and branded innovative drugs are not subject to the tariff and will continue the existing trade policy. Currently, this policy is only a public statement by the president, and there is no formal executive order from the White House yet. Furthermore, several US states have filed lawsuits against this round of tariff policies for exceeding their authority and violating the law. There is a possibility that subsequent clauses may be modified, delayed, or even shelved, making the overall implementation highly uncertain.
