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Trump's Phased Generic Drug Tariffs Could Upend U.S. Pharmaceutical Distribution

The Trump administration plans escalating tariffs on imported generic medicines that will reshape how drugs move through U.S. supply chains. A 100% tariff takes effect in August 2028, climbing to 200% in 2029, and creates pressure for domestic manufacturing buildout. The policy directly affects the three major pharmaceutical distributors controlling the vast majority of U.S. drug logistics networks. Generic drugs comprise more than 90% of U.S. prescriptions, yet the country depends heavily on India, China and Italy for both finished generics and active pharmaceutical ingredients. Industry experts warn reshoring production faces significant obstacles due to razor-thin generic margins and labor-intensive manufacturing. Unless tariff increases substantially offset domestic production costs, reshoring efforts may stall despite the administration's stated timeline for facility construction.