Trump threatens 200% tariffs on generic drugs from 2029, giving manufacturers two years to shift production to US

The tariff timeline

Trump's Truth Social post laid out a three-phase schedule: zero tariffs from August 1, 2026 for two years, then 100% for one year starting summer 2028, then 200% thereafter. He said the measure is designed to "bring generic drug production back to America." Companies that do not build US facilities within the window will be "punished," he added, without specifying the legal basis.

Starting August 1, 2026, all generics imported into the United States will continue to have a zero percent tariff for a period of two years, after which the tariff will be raised to 100 percent for one year and then to 200 percent.

The new threat escalates pressure on drug manufacturers outside the US. Earlier in spring, Trump had already announced a 100 percent tariff on patent-protected branded drugs with a staggered start from late July, though exemptions exist for companies with US production or special trade deals.

Sandoz in the crosshairs

Swiss generics giant Sandoz, spun off from Novartis in 2023, would be among the hardest hit. The Basel-based company produces mainly in Austria and Slovenia, with Canadian production outsourced to a partner. CEO Richard Saynor told the NZZ last year that rebuilding US capacity was not economical under current conditions. He has repeatedly warned that tariffs on generics would raise drug prices in the US and worsen patient access.

Tariffs on generics will make medicines more expensive in the US and worsen patient access.

Sandoz generated 30 percent of its revenue from biosimilars and 70 percent from classic generics last year. Trump did not explicitly mention biosimilars, but the industry assumes they will be covered.

Original drugs and big pharma deals spared

Roche and Novartis, which focus on original patented drugs, are not affected by the latest tariff threat. Washington has already struck agreements with most large pharmaceutical companies, including the two Swiss groups. Those deals exempt them from tariffs in exchange for reducing drug prices for the Medicaid programme, offering products on the "TrumpRx" direct-sales platform, and expanding US production.

Swiss contract manufacturers such as Siegfried, Bachem and Lonza may also face consequences, though details remain unclear.

Swiss government and next steps

The US is the most important export market for Swiss pharmaceutical firms. In April 2026, a White House decree set a reduced tariff of 15 percent on Swiss patented drug exports. The Swiss government at the time called the additional tariffs "an extra burden for the exporting Swiss pharmaceutical industry," according to the Federal Department of Economic Affairs, Education and Research.

Trump gave Commerce Secretary Howard Lutnick one year to review the generics situation and recommend further measures. The two-year grace period now gives manufacturers a window to decide whether to invest in US production or face steep tariffs.