Trump administration abandons proposed tariffs on generic drugs

The Trump administration has decided not to impose tariffs on generic drugs, narrowing the scope of its ongoing investigation into the pharmaceutical trade.

The Wall Street Journal publishes the report. More:

Officials confirmed that the White House was no longer actively considering Section 232 tariffs on generic pharmaceuticals as part of the national security investigation launched earlier this year. The decision follows an internal debate over whether to use tariffs to bring drug manufacturing back to the United States.

President Trump previously threatened to impose 100% tariffs on brand-name drugs, but then delayed implementation to allow negotiations with pharmaceutical companies. Generics — which account for about 90% of all U.S. prescriptions — will be exempt for now, according to White House and Commerce Department spokespeople.

This decision marks a major step back from the Commerce Department’s initial investigation, which targeted both generic and non-generic drugs as well as pharmaceutical ingredients. It also reverses an earlier campaign promise to restore production of essential generic drugs in the United States.