Washington, 22 July (H.S.): US President Donald Trump has announced a new tariff policy on imported generic medicines, stating that such drugs will face zero per cent tariffs for the first two years under the policy, which will come into effect from August 1. After the initial two-year period, a 100 per cent tariff will be imposed for the following year, after which it will be increased to 200 per cent.

According to French television network France24, Trump said in a post on social media platform Truth Social that the objective of the policy is to bring generic drug manufacturing back to the United States. He made it clear that companies failing to establish manufacturing plants and the required infrastructure in the US within the stipulated timeline would face punitive action.

Trump is also putting pressure on pharmaceutical companies through his “Most-Favoured-Nation” drug pricing policy, aimed at reducing medicine prices. Under this policy, companies are expected to ensure that drug prices in the United States are brought in line with those in developed countries where the same medicines are available at comparatively lower prices.

According to the US Food and Drug Administration (FDA), more than 90 per cent of medicines sold in the United States belong to the generic category. However, Trump clarified that there would be no change in the existing policy related to patented, branded and innovation-based medicines.

It is worth noting that last year, several major pharmaceutical companies across the world entered into agreements with the US government under which medicines worth billions of dollars were granted tariff exemptions.

Earlier in April, Trump had signed an executive order proposing a 100 per cent tariff on imported branded medicines. However, the provision would not apply to companies that agree to US government drug pricing agreements or commit to manufacturing their products within the United States.

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Hindusthan Samachar / Jun Sarkar