UBS Warns Trump's 100% Generic Drug Tariff Puts Indian Pharma "On Notice"; Goldman Flags Reshoring Winners
President Trump will impose a 100% tariff on imported generic drugs starting in August 2028, rising to 200% a year later, unless manufacturers shift production to the US.
"This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them," Trump wrote on Truth Social late Tuesday.
He continued, "The objective of this Policy is to protect the people of the United States. The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is," adding, "Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America."
Trump's announcement is the latest effort to reshore critical supply chains, and in this case, boost domestic production of generic drugs. Trump has been pressuring drugmakers through his most-favored-nation drug pricing policy to lower prices to what people pay in other high-income countries. At least 90% of medicines sold in the U.S. are generics.
UBS analyst Aditi Samajpati told clients earlier that Trump's move to reshore generic drug production puts Indian pharmaceutical companies "on notice."
Samajpati said:
Goldman analyst Matt Dellatorre offered clients a way to profit from this announcement:
The national security case for reshoring critical generic-drug supply chains stems directly from Covid-era disruptions of essential medicines, active pharmaceutical ingredients, protective equipment, and medical devices. Years of offshoring have left the US dangerously dependent on foreign production, such as that in India.
In the event of a future supply shock, particularly one triggered by conflict in the Pacific, Washington could be confronted with shortages far more severe than the Covid-era. Rebuilding domestic production would give the US greater resilience to absorb any future supply shock without jeopardizing access to critical medical supplies.
Tyler Durden Wed, 07/22/2026 - 09:45
Continue reading...
[ H/T ZeroHedge ]
President Trump will impose a 100% tariff on imported generic drugs starting in August 2028, rising to 200% a year later, unless manufacturers shift production to the US.
"This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them," Trump wrote on Truth Social late Tuesday.
He continued, "The objective of this Policy is to protect the people of the United States. The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is," adding, "Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America."
Trump's announcement is the latest effort to reshore critical supply chains, and in this case, boost domestic production of generic drugs. Trump has been pressuring drugmakers through his most-favored-nation drug pricing policy to lower prices to what people pay in other high-income countries. At least 90% of medicines sold in the U.S. are generics.
UBS analyst Aditi Samajpati told clients earlier that Trump's move to reshore generic drug production puts Indian pharmaceutical companies "on notice."
Samajpati said:
Goldman analyst Matt Dellatorre offered clients a way to profit from this announcement:
The national security case for reshoring critical generic-drug supply chains stems directly from Covid-era disruptions of essential medicines, active pharmaceutical ingredients, protective equipment, and medical devices. Years of offshoring have left the US dangerously dependent on foreign production, such as that in India.
In the event of a future supply shock, particularly one triggered by conflict in the Pacific, Washington could be confronted with shortages far more severe than the Covid-era. Rebuilding domestic production would give the US greater resilience to absorb any future supply shock without jeopardizing access to critical medical supplies.
Tyler Durden Wed, 07/22/2026 - 09:45
Continue reading...
[ H/T ZeroHedge ]
