Trump Announces 100% Tariff on Generic Drugs, Association Urges 'Domestic Production, Domestic Use' as Urgent Priority

U.S. President Trump announced yesterday (21) a new generic drug tariff policy, stating that a 100% tariff will be imposed on all generic drugs imported into the United States starting August 2028, with the rate increasing to 200% by 2029. In response, Yin Wei-Ying, Chair of the Public Affairs Committee of the Generic Drug Association, urged today (22) that implementing 'domestic production, domestic use' of pharmaceuticals is now an urgent priority.

Trump stated that a two-year grace period will be granted to pharmaceutical companies, allowing time to establish manufacturing facilities and acquire equipment in the U.S. Therefore, starting August 1, 2028, a 100% tariff will be applied to all imported generic drugs, increasing to 200% on August 1, 2029. He emphasized that this policy aims to bring generic drug manufacturing back to the U.S. and strengthen the domestic pharmaceutical supply chain and production capacity.

Yin Wei-Ying called on Health and Welfare Minister Shih Chong-Liang to promptly convene a meeting with industry representatives, setting a goal to ensure national medication resilience within two years, stressing that achieving 'domestic production, domestic use' is now imperative.

Yin pointed out that if the U.S. imposes additional tariffs on exported generic drugs, it will inevitably increase costs for international generic drug manufacturers, with such pressures likely to be passed on to other markets. In recent years, Taiwan's reliance on imported generic drugs has gradually increased, further highlighting structural risks to domestic pharmaceutical supply resilience.

Therefore, Yin recommended that the Ministry of Health and Welfare accelerate efforts to integrate opinions from industry, government, and academia to identify resilient pharmaceuticals. Through healthcare systems, drug pricing measures, legal revisions, and legislative initiatives, domestic manufacturing capacity for active pharmaceutical ingredients (APIs), new drugs, and generic drugs should be enhanced to ensure public medication safety and stable supply.