Zero Percent Tax on Generic Drug Imports Announced Starting August 1

US President Donald Trump has announced that starting August 1, a zero percent tax will be imposed on imports of generic drugs for a period of two years. According to Trump, the tax will increase to 100 percent after one year and then to 200 percent subsequently. The policy aims to boost domestic production of generic drugs and ensure the safety of American citizens, Trump stated.

Trump made this announcement on Truth Social on Wednesday morning. He wrote, “Beginning August 1, 2026, all generic drugs imported into the United States will have a zero percent tax for a period of two years. After that, the tax will increase to 100 percent for one year, and then increase to 200 percent.”

He added, “This step has been taken to bring generic drug production back to America. Companies that do not establish factories and acquire necessary materials to manufacture these drugs within the specified period will be fined.” Trump emphasized, “The aim of this policy is to protect the people of America. Policies regarding patented, branded, or newly created drugs that have been very successful will continue. Drug manufacturing plants are being developed across the US on a scale never seen before.”