The United States will implement a 100% tariff on generic pharmaceuticals beginning in August 2028, President Donald Trump announced on social media Tuesday evening. The measure aims to incentivize drug manufacturers to relocate production facilities to the U.S. before the tariffs take effect, according to the announcement.

The prospect of imposing tariffs on generic drugs has been under discussion within the administration for more than a year. Some officials have expressed concerns about the high tariff rates required to encourage domestic reshoring of generic drug manufacturing, as well as the potential impact on consumers. Generic medications constitute approximately 90% of prescriptions filled in the United States, underscoring their importance in the healthcare system.

Previously, the White House and the Commerce Department had indicated there were no immediate plans to levy tariffs on generic pharmaceuticals. In April, the administration imposed tariffs on certain brand-name drugs but deliberately excluded generics from that initial round, leaving the possibility open for future reconsideration.

The forthcoming tariff policy reflects ongoing efforts to reduce reliance on overseas pharmaceutical production and bolster the domestic industry. However, critics caution that such measures could lead to increased costs for consumers and strain the generic drug supply chain. The government has provided an extended timeframe to allow manufacturers to adjust their operations ahead of the tariff implementation.