Trump hits foreign drug manufacturers in HUGE announcement

The cost of generic drugs will likely change drastically after the latest tariff announcement from President Donald Trump.

The president said in a post on Truth Social that he would allow generic drug imports to have zero tariffs for two years, then face two large hikes afterward.

'The objective of this Policy is to protect the people of the United States.'

Trump said the tariffs were designed to encourage drug companies to move their manufacturing operations back to the U.S.

"Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for a two year period of time, after which the TARIFF will be raised to 100% for a one year period of time, and 200% thereafter," he wrote.

"The objective of this Policy is to protect the people of the United States," Trump added.

Generic drugs account for 90% of the prescriptions in the U.S., according to the Food and Drug Administration, and half of generic drugs are manufactured in India. China, on the other hand, is the source for 95% of imported ibuprofen and 70% of imported acetaminophen.

White House spokesman Kush Desai cited other efforts from the administration to reshore manufacturing in comments to CBS News.

"The President's resounding success securing firm reshoring plans from global drugmakers as part of our most-favored-nations deals and Section 232 tariff program for branded drugs is proof that this administration has a track record of success to get critical manufacturing back into the United States," Desai said in an email.

RELATED: The hidden danger in Trump’s drug-price plan

Experts indicated to CBS News that manufacturers were likely to pass on the tariff costs to consumers but that the already low prices meant the cost increases could be modest.

However, some manufacturers may choose to pull out of the U.S. market altogether and cause drug shortages.

"Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America. Thank you for your attention to this matter!" Trump concluded.

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