--- title: "Trump Sets August 1 Start for Generic Drug Tariff Clock, Warns of 200% Duties: Companies Must 'Build Plant and Equipment' in US" type: "News" locale: "en" url: "https://longbridge.com/en/news/293415324.md" description: "President Trump announced that imported generic drugs will face a two-year tariff-free period starting August 1, followed by duties rising to 100% and then 200%. This policy aims to reshore pharmaceutical manufacturing to the U.S., penalizing companies that fail to build domestic plants. The move expands on previous strategies involving major drugmakers like Johnson & Johnson and Merck, who have committed to domestic investments and price alignments." datetime: "2026-07-22T02:13:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293415324.md) - [en](https://longbridge.com/en/news/293415324.md) - [zh-HK](https://longbridge.com/zh-HK/news/293415324.md) --- # Trump Sets August 1 Start for Generic Drug Tariff Clock, Warns of 200% Duties: Companies Must 'Build Plant and Equipment' in US President **Donald Trump** announced Tuesday that generic drugs imported into the U.S. will remain exempt from tariffs for two years before facing duties of up to 200%, as his administration seeks to push pharmaceutical manufacturing back to the U.S. Beginning August 1, imported generic medicines will continue to face a 0% tariff for two years before duties increase to 100% for one year and then 200%, according to a post by Trump on Truth Social. ## **Trump Gives Drugmakers Two-Year Window** Trump said the policy is designed to encourage drugmakers to relocate generic pharmaceutical manufacturing to the U.S., with companies that fail to build domestic plants during the transition period facing penalties. “This is done in order to RESHORE Generic Pharmaceutical Production into America,” Trump added. Generic drugs account for more than 90% of prescriptions filled in the U.S., according to the Food and Drug Administration. **Read Also: Super Micro Computer, Rocket Lab, Dell, Capital One and Oklo: Why These 5 Stocks Are on Investors' Radars Today** ## **Drugmakers to Expand US Manufacturing** The generic drug policy expands on the administration’s earlier strategy for branded and patented medicines, under which major drugmakers agreed to lower prices in exchange for temporary tariff exemptions. In December, nine drugmakers, including **Bristol Myers Squibb Co.** (NYSE:BMY), **Merck & Co. Inc.** (NYSE:MRK), **Novartis AG** (NYSE:NVS), **Amgen Inc.** (NASDAQ:AMGN) and **GSK plc** (NYSE:GSK), committed to bringing U.S. drug prices more in line with those in other developed countries. **Johnson & Johnson** (NYSE:JNJ) committed to new manufacturing investments under those agreements earlier this year, while Merck pledged more than $70 billion toward domestic research and production. Trump said pharmaceutical facilities are now being built across the U.S. “at a level never seen before.” **Benzinga edge rankings** indicate JNJ has a Momentum score in the 84th percentile and a Growth score in the 29th percentile. **Read Also: A Hidden Fed Disconnect Could Become the Market's Biggest Risk** **_Disclaimer_:** _This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors._ _Photo Courtesy: noamgalai on Shutterstock.com_ ### Related Stocks - [MRK.US](https://longbridge.com/en/quote/MRK.US.md) - [JNJ.US](https://longbridge.com/en/quote/JNJ.US.md) - [BBH.US](https://longbridge.com/en/quote/BBH.US.md) - [XLV.US](https://longbridge.com/en/quote/XLV.US.md) - [IHE.US](https://longbridge.com/en/quote/IHE.US.md) - [BIS.US](https://longbridge.com/en/quote/BIS.US.md) - [BIB.US](https://longbridge.com/en/quote/BIB.US.md) - [FBT.US](https://longbridge.com/en/quote/FBT.US.md) - [SMCI.US](https://longbridge.com/en/quote/SMCI.US.md) - [RKLB.US](https://longbridge.com/en/quote/RKLB.US.md) - [DELL.US](https://longbridge.com/en/quote/DELL.US.md) - [COF.US](https://longbridge.com/en/quote/COF.US.md) - [OKLO.US](https://longbridge.com/en/quote/OKLO.US.md) - [BMY.US](https://longbridge.com/en/quote/BMY.US.md) - [NVS.US](https://longbridge.com/en/quote/NVS.US.md) - [AMGN.US](https://longbridge.com/en/quote/AMGN.US.md) - [GSK.US](https://longbridge.com/en/quote/GSK.US.md) - [COF-N.US](https://longbridge.com/en/quote/COF-N.US.md) - [COF-J.US](https://longbridge.com/en/quote/COF-J.US.md) - [COF-I.US](https://longbridge.com/en/quote/COF-I.US.md) - [CELG.RT.US](https://longbridge.com/en/quote/CELG.RT.US.md) - [NOT.DE](https://longbridge.com/en/quote/NOT.DE.md) - [GSK.UK](https://longbridge.com/en/quote/GSK.UK.md) - [GSK.WI.US](https://longbridge.com/en/quote/GSK.WI.US.md) ## Related News & Research - [J&J nabs option to buy ‘in vivo’ CAR-T maker Sail for nearly $2.6B](https://longbridge.com/en/news/294502666.md) - [First Nebraska Trust Co Takes Position in Johnson & Johnson $JNJ](https://longbridge.com/en/news/294600096.md) - [BUZZ-Street View: J&J's strongest talc settlement push yet could clear legal cloud](https://longbridge.com/en/news/294044207.md) - [Talon Private Wealth LLC Makes New $1.36 Million Investment in Johnson & Johnson $JNJ](https://longbridge.com/en/news/294188353.md) - [Argent Capital Management LLC Sells 9,412 Shares of Johnson & Johnson $JNJ](https://longbridge.com/en/news/294574869.md)