US President Donald Trump has announced a new phased tariff policy targeting imported generic medicines, designed tostimulate biopharmaceutical companies to establish domestic manufacturing operations within the United States.
The policy outlines a structured timeline starting with a 0% tariff for the first two years, followed by a 100% duty in Year 3, and scaling to a 200% tariff from Year 4 onwards for companies that do not transition production to US soil. The multi-year grace period aims to give global suppliers sufficient runway to set up onshore infrastructure while securing immediate domestic supply chains.
The roadmap impacts global pharmaceutical exporters, including key suppliers in India, who currently fill nearly half of all US generic prescriptions across critical therapeutic areas like diabetes, heart disease, and oncology.
While the initial two-year exemption offers temporary relief, pharmaceutical companies are now evaluating strategic investments, US-based acquisitions, and localized CDMO partnerships to preserve their market share and ensure supply continuity before escalating duties take effect.
Written by: Pragna Biswas
Graphics by: Pramit Hazra
