US President Donald Trump speaks in the Oval Office of the White House in Washington, D.C., on July 21, 2026. Photo by SAUL LOEB / AFP via Getty Images
U.S. President Donald Trump says imported generic drugs will face a 100 percent tariff beginning Aug. 1, 2028, rising to 200 percent a year later.
“This is done in order to reshore generic pharmaceutical production into America, with a penalty to those companies that decide not to build plants and equipment within the stated period of time given to them,” Trump announced on his Truth Social platform on July 21.
Trump first announced plans in September 2025 to impose 100 percent tariffs on patented pharmaceuticals before formalizing the policy in an April 2026 proclamation.
On April 2, 2026, Trump signed a proclamation imposing tariffs on patented pharmaceuticals under Section 232 of the Trade Expansion Act of 1962. The order exempted general pharmaceuticals, but said Commerce Secretary Howard Lutnick would revisit the issue within one year.
In 2023, Canadian pharmaceutical exports to the United States accounted for a value of more than $8.7 billion, and represented 3 percent of total American drug imports. A March 2025 study found that a portion of those pharmaceuticals that have final production in Canada are worth an estimated $3 billion, and 25 percent tariffs on those drugs could increase the costs of more than 400 drugs by $750 million.
The United States is Canada’s top source of pharmaceuticals, accounting for around 36 percent of the total value of Canada’s pharmaceutical imports from that country, according to Statistics Canada.
The Canadian Pharmaceutical Manufacturers and Exporters Alliance said in a July 22 statement that it had seen the proposed tariff framework for generic drugs, and was awaiting further details from Washington.
The alliance said given that the tariffs would not apply for two years, there would likely be sufficient time for industry and policymakers to further assess implementation details, supply chain implications, and “opportunities to support each other’s domestic manufacturing objectives.”
Trump signed proclamations this week imposing new 50 percent tariffs on selected Canadian imports, applying to about 5 percent of Canada’s total trade with America, effective Aug. 19. The new tariffs would apply to a wide range of Canadian exports, like dairy products, cement, and animal products used in pharmaceuticals.
