Investing.com– U.S. President Donald Trump said on Tuesday evening the U.S. will impose a 100% tariff on all generic drug imports from 2028 in an attempt to reshore generic pharmaceutical production to the country. 

Trump said in a Truth.Social post that generic drugs will continue to be exempt from tariffs for the next two years, following which the sector will face a 100% duty.

He said the tariff will then be raised to 200% thereafter. 

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“This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them,” Trump said. 

Trump had earlier this year signed a proclamation imposing 100% tariffs on import of patented pharmaceuticals, and had also attempted to tariff other pharma imports earlier in his term. 

The President said the tariffs were largely aimed at promoting more domestic production by major pharma companies. He said pharma companies could be exempt from his tariffs if they agree to his “most favored nation” pricing policy, under which companies charge U.S. buyers the same amount paid by other countries. 

Trump also announced exemptions for companies building drug production facilities in the United States.