U.S. President Donald Trump has set his sights on generic drug imports into the U.S. amid the latest bout of trade tensions between Canada and the U.S. <\/p>\n
In a social media post, Trump said that as of Aug. 1, 2028, generic drugs being brought into the U.S. will face a 100 per cent tariff, which will rise to 200 per cent a year later. <\/p>\n
\u201cThis is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them,\u201d the post reads. <\/p>\n
\u201cThe objective of this Policy is to protect the people of the United States.\u201d <\/p>\n
According to market research firm Orion Market Research, the North America generic drug market was valued at US$176.6 billion in 2024 and is projected to reach US$315.5 billion by 2035. <\/p>\n
The Canadian Pharmaceutical Manufacturers and Exporters Alliance said in a statement Wednesday that it has seen the proposed tariff framework in the social media post and is waiting for details from the U.S. administration. <\/p>\n
\u201cThe announcement describes a two-year period before any tariff is applied to generic pharmaceuticals. As a result, we believe there is sufficient time for industry participants and policymakers to further assess implementation details, supply chain implications, and opportunities to support each other\u2019s domestic manufacturing objectives,\u201d the statement reads. <\/p>\n
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President Donald Trump speaks to reporters before boarding Air Force One, Wednesday, July 22, 2026, at Joint Base Andrews, Md. (AP Photo\/Julia Demaree Nikhinson) U.S. President Donald Trump speaks to reporters before boarding Air Force One, Wednesday, July 22, 2026, at Joint Base Andrews, Md. (AP Photo\/Julia Demaree Nikhinson) <\/p>\n
The trade group also said Trump\u2019s comment signalled an objective to bring drug production back to the U.S. and that Canada\u2019s industry can help in building a connected North American pharmaceutical manufacturing base.<\/p>\n
Jim Keon, president of the Canadian Generic Pharmaceutical Association, said in a statement that pharmaceutical supply chains in Canada and the U.S. are highly integrated. <\/p>\n
\u201cCanada imports U.S.-manufactured generic medicines, including essential hospital medicines, while Canadian manufacturers rely on active pharmaceutical ingredients, excipients, packaging and other critical inputs made in the U.S. This cross-border trade supports patients, manufacturers and workers on both sides of the border,\u201d he said. <\/p>\n
He added that a resilient supply chain for generic drugs is critical to patient care, health-care systems and the security of both Canada and the U.S.<\/p>\n
Tariffs, Keon said, would disrupt fragile pharmaceutical supply chains. <\/p>\n