U.S. Exempts Generic Drugs From 100% Pharma Tariffs as India Supplies 40% of Prescriptions
Updated
Updated · The New York Times · Oct 2
U.S. Exempts Generic Drugs From 100% Pharma Tariffs as India Supplies 40% of Prescriptions
3 articles · Updated · The New York Times · Oct 2
Summary
Tuesday’s new 100% U.S. tariff on some pharmaceutical imports left generic drugs untouched, underscoring how hard it is to shift low-cost medicine production back to America.
India’s cost advantage is central: Dr. Reddy’s Hyderabad plant alone employs about 1,900 workers, makes more than 100 generic drugs and ships 75% of nearly 1 billion monthly oral doses to U.S. patients.
Generics account for 90% of U.S. prescriptions, and 40% are made in India, making the country a cornerstone of the American drug supply in a high-volume, low-margin market.
Trump has said he wants domestic generic manufacturing revived and floated 100% tariffs in 2028 and 200% a year later, but doctors and supply-chain experts warn taxing imported generics would raise costs and risk shortages.
With US labor costs significantly higher, can America truly rebuild its generic drug empire before the looming 2028 tariffs take effect?
As hospitals already ration critical medicines, could the aggressive push for American-made drugs accidentally trigger a catastrophic healthcare shortage?