According to a report by The Wall Street Journal, the U.S. government does not intend to impose tariffs on generic drugs imported from foreign countries. Previously, U.S. President Trump announced that a 100% tariff on branded drugs would be imposed starting October 1, but there was no mention of generic drugs. It is reported that this move aims to allow more time for negotiations with pharmaceutical companies.
White House spokesperson Kush Desai issued a statement noting that the current administration is not actively considering imposing tariffs on generic drugs under Section 232 of the Trade Expansion Act of 1962.
Sources indicate that there is internal disagreement within the White House regarding whether to impose additional tariffs on generic drugs, with concerns that it could lead to price increases or even drug shortages. More importantly, tariffs on generic drugs may prove ineffective since the cost of producing these drugs in countries such as India is extremely low. However, some officials at the U.S. Department of Commerce believe that imposing tariffs and implementing quotas on generic drugs may ultimately be necessary to bring pharmaceutical production back to the United States.