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Business

Trump’s generic drug tariff plan gives manufacturers 2 years to reshore

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Trump's generic drug tariff plan gives manufacturers 2 years to reshore

President Donald Trump announced Tuesday that imported generic drugs will remain tariff-free for the next two years before facing steep new import duties, saying the move is designed to encourage pharmaceutical companies to manufacture more medicines in the U.S.

In a Truth Social post, Trump said all generic drugs imported into the U.S. will continue to face a 0% tariff beginning Aug. 1, 2026, for a two-year transition period. After that, the tariff will rise to 100% for one year before increasing to 200%.

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“Effective August 1st, 2026, all Generic Drugs being brought into the United States will continue to have a TARIFF of ZERO PERCENT for a two-year period of time, after which the TARIFF will be raised to 100% for a one-year period of time, and 200% thereafter,” Trump wrote.

The president said the phased approach is intended to give pharmaceutical companies time to move production to the U.S. before the higher tariffs take effect.

TRUMP ADMINISTRATION HITS CANADA WITH 50% TARIFF OVER ALLEGED TRADE ‘DISCRIMINATION’

President Donald Trump points while speaking during a meeting in the Oval Office at the White House.

President Donald Trump gestures while meeting with Lebanese President Joseph Aoun in the Oval Office at the White House on Tuesday. (Aaron Schwartz/CNP/Bloomberg via Getty Images / Getty Images)

“This 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,” Trump wrote.

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Trump said the objective of the policy is “to protect the people of the United States.”

The announcement marks the latest effort by the Trump administration to use tariffs as leverage to encourage domestic manufacturing in industries it considers strategically important, including pharmaceuticals. The administration has repeatedly argued that the U.S. has become overly dependent on foreign countries for critical medicines and pharmaceutical ingredients.

Trump said his administration’s existing policy on patented, branded and innovative drugs would remain unchanged.

WHAT ARE THE MAIN STICKING POINTS IN THE TRUMP ADMIN’S TRADE NEGOTIATIONS WITH CANADA, MEXICO?

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Boxes of generic prescription medications and blister packs of tablets are displayed together

Boxes of generic prescription drugs and blister packs of tablets from Tehatta, India. President Donald Trump announced a phased tariff plan on imported generic drugs aimed at encouraging pharmaceutical manufacturing in the United States. (Soumyabrata Roy/Majority World/Universal Images Group via Getty Images  / Getty Images)

“The Policy on Patented, Branded, or Innovative Drugs, which has been so successful, will remain as is,” he wrote.

He also pointed to what he described as a surge in domestic investment by drugmakers.

“Pharmaceutical Facilities are being built, at a level never seen before, all over the United States of America,” Trump wrote.

The Association for Accessible Medicines, which represents generic drug manufacturers, said it is seeking additional details on the proposal but supports policies that strengthen domestic manufacturing.

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“We need to understand more the specifics of the policy, but the generics industry is committed to pursuing policies that support and stabilize both the industry and the access necessary to ensure patients have reliable options for affordable medicines,” Association for Accessible Medicines President and CEO John Murphy III said in a statement shared with FOX Business.

Murphy said the industry has expanded manufacturing investments in the U.S. over the past two years but argued that structural problems involving purchasing and reimbursement continue to hinder additional growth. He said the group looks forward to working with the administration and Congress on policies to strengthen the domestic generic drug industry.

Capsules move along a pharmaceutical manufacturing production line

Capsules move along a production line at a Sanofi pharmaceutical manufacturing facility in Lisieux, France. President Donald Trump announced a phased tariff plan on imported generic drugs aimed at encouraging pharmaceutical manufacturing in the U.S. (Lou Benoist/AFP via Getty Images, File / Getty Images)

Generic drugs account for more than 90% of prescriptions filled in the United States, according to the Food and Drug Administration. 

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Many also rely on global manufacturing networks and imported active pharmaceutical ingredients, making supply chain resilience a growing focus for policymakers and the pharmaceutical industry.

The announcement gives manufacturers a two-year runway before tariffs begin increasing, allowing companies time to decide whether to build or expand U.S. production facilities or continue importing products while facing substantially higher duties.

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FareShare North East ‘devastated’ by Middlesbrough break-in

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Rachel, a woman with straight shoulder-length blonde hair wearing a graduation cap. She has a nose stud, and wears light pink lipstick.

A charity distributing food to the most needy said it had been “devastated” after thieves smashed their way into its warehouse, leaving tonnes of supplies ruined.

They broke into the Teesside base of FareShare North East on Tuesday and cut the power to the charity’s walk-in freezer and chiller units, meaning perishables like milk and meat had to be thrown out.

The charity said it lost 16 tonnes of food – the equivalent of 7,000 meals.

Middlesbrough hub manager Natasha Flanagan said it was “heartbreaking”, adding: “We’ve got a really great team of volunteers and staff and we try our best every day to get food out to people that need it.”

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FareShare North East redistributes food donated by supermarkets from its warehouses in Newcastle and Middlesbrough to more than 200 community groups, including food banks.

The charity has been in Middlesbrough since 2023 and moved to its new base on Skippers Lane about four months ago.

Flanagan uncovered the damage when she arrived for work.

She said: “Lockers were ransacked, the staff drawers in the main warehouse were ransacked, and then I’ve seen the chiller doors were left open and the freezer door which has caused significant damage to food.

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“Honestly it’s heartbreaking and we do really good things here.”

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How Christopher O’Reilly Palm Beach Built a Career Exploring the Bahamas by Yacht

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How Christopher O’Reilly Palm Beach Built a Career Exploring the Bahamas by Yacht

Christopher O’Reilly Palm Beach has spent much of his career navigating some of the Caribbean’s most beautiful waters. Raised in Greenwich, Connecticut, he grew up sailing on Long Island Sound and developed an early appreciation for life on the water. What began as a childhood passion eventually became a career operating motor yachts throughout South Florida and the Bahamas.

After attending Brunswick School and Fairfield University, O’Reilly began working in the Marine Department at Riverside Yacht Club. He later earned his Merchant Mariner Credential and entered the yachting industry full-time, advancing from mate to captain aboard motor yachts up to 126 feet in length.

Much of his career has centered on captaining yachts throughout the Bahamas. Operating from Nassau, he guided guests to some of the country’s most sought-after destinations, including Harbour Island, known locally as Briland, Spanish Wells, Rose Island, and the Exumas.

Trips often included snorkeling at Thunderball Grotto, exploring the Exuma Cays Land and Sea Park, visiting Rocky Dundas Cave, stopping at Danger Reef, and taking guests to Big Major Cay to see the famous swimming pigs.

In 2019, O’Reilly was featured by Select Yachts after being named captain of the motor yacht Lady Sharon Gale. The recognition reflected years of experience managing vessels, planning voyages, and creating memorable experiences for guests throughout the Bahamas.

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Today, he continues to share his knowledge of Bahamas yachting, navigation, and destination planning while remaining closely connected to the boating lifestyle he has built his career around.

What first inspired you to work on the water?

Growing up in Greenwich, Connecticut, I spent a lot of time sailing on Long Island Sound. I enjoyed hockey growing up, but the water always pulled me in. I liked the freedom of it and the fact that every day felt different.

Once I started spending time around marinas and yacht crews, I realized there was an entire industry built around boating and travel. That opened my eyes to what was possible.

What attracted you to captaining yachts in the Bahamas?

The Bahamas offers something different every day. You can leave Nassau in the morning and be anchored off a quiet cay a few hours later. Every island has its own character.

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I enjoyed helping guests experience places they might never have discovered on their own. A lot of people arrive with a few destinations in mind, but by the end of the trip, they have new favorites.

What were some of the most popular routes you captained?

Harbour Island and Spanish Wells were always requested. Guests loved the atmosphere and the boating culture around those areas.

The Exumas were another favorite because of the variety. One day, we might be snorkeling at Thunderball Grotto. The next day, we could explore the Exuma Cays Land and Sea Park or head to Big Major Cay.

Rose Island was popular for shorter day trips from Nassau. Guests could spend the day swimming, relaxing on the beach, and enjoying jet skis without committing to a longer voyage.

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What makes the Exumas so special?

The diversity.

You have remote anchorages, incredible snorkeling, marine parks, sandbars, caves, and wildlife all within a relatively small area. The water itself is unlike almost anywhere else.

I remember guests arriving with high expectations because they had seen photos online. Almost every time, they would say the water looked even better in person.

What destination surprised guests the most?

Rocky Dundas Cave.

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Many guests had never heard of it before arriving. Once they swam inside and saw the limestone formations, it became one of the most talked-about parts of the trip.

Thunderball Grotto was another location that always impressed people. The combination of the cave structure and marine life creates a very unique experience.

What do people misunderstand about yacht travel in the Bahamas?

Many people think it is all about luxury.

What makes it memorable is access. A yacht allows you to experience places that are difficult to reach any other way. You can anchor near an empty beach, explore a remote cay, or spend the afternoon in an area with very few people around.

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That flexibility changes the entire experience.

What happens behind the scenes to make those trips successful?

Planning.

You are constantly monitoring weather, tides, navigation routes, fuel consumption, and timing. Guests see the destinations. The crew is thinking about everything that needs to happen to get there safely and efficiently.

A smooth trip usually reflects extensive preparation before the yacht ever leaves the dock.

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What skills matter most for a yacht captain?

Situational awareness is a big one.

You need to understand conditions, anticipate changes, and make good decisions before problems develop.

Communication is also important. Guests want to enjoy themselves. The crew needs to stay coordinated. Clear communication helps everything run smoothly.

What advice would you give someone interested in a career in yachting?

Spend time around the industry.

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Visit marinas. Talk to captains and crew members. Learn how boats operate. The best education often comes from being around experienced people and paying attention.

Yachting offers opportunities to travel, learn, and build practical skills. It rewards people who are willing to work hard and stay adaptable.

What does success mean to you today?

Creating great experiences for people and doing things right.

Some of the most rewarding moments came when guests finished a trip and immediately started talking about when they wanted to come back.

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When people leave with memories they will talk about for years, that feels like success.

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Business

At Close of Business podcast July 23 2026

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At Close of Business podcast July 23 2026

Tom Zaunmayr speaks with Mark Beyer about DevelopmentWA’s residential land developments in the Pilbara.

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Goosehead Insurance, Inc. (GSHD) Q2 2026 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript