The European Commission stated on Wednesday that it anticipates European generic medicines will be excluded from U.S. President Donald Trump’s newly announced tariffs, noting that Washington committed to a zero‑tariff rate under last year’s transatlantic trade agreement.
On Tuesday, President Trump unveiled plans to impose a 100% tariff on generic pharmaceuticals beginning in August 2028, as part of efforts to encourage the relocation of drug manufacturing to the United States, with the rate set to rise to 200% in 2029.
However, under the trade agreement signed in Turnberry, Scotland, in 2025, the United States pledged to exempt European generic drugs from such increases. The agreement stipulates that EU generic pharmaceutical exports would only be subject to the U.S. most‑favored‑nation tariff rate, which effectively stands at zero percent.
Trump’s latest tariff threat comes as his administration seeks to restore its broader tariff framework following a legal setback earlier this year, with the temporary 10% tariffs set to expire on Friday. While Washington has maintained that the new investigations will not exceed the 15% ceiling established under the transatlantic agreement, the European Union remains cautious, anticipating further probes into issues such as forced labor, industrial overcapacity, and potentially the digital services tax.
The European generics industry group, Medicines for Europe, warned that the proposed measures could lead to significant medicine shortages across the United States. The association emphasized that off‑patent drugs from Europe should remain exempt from tariffs under all circumstances in line with the Turnberry agreement.
Swiss generic drugmaker Sandoz said it is early to evaluate the potential impact of the proposed measure, as further details on its implementation and scope remain unclear. The company said it would continue discussions with policymakers to support efforts to improve medicine affordability and access in the U.S.
The tariff threats add pressure on the pharmaceutical sector, following U.S. warnings of possible new levies on Germany over its drug pricing policies. Washington has alleged that Germany’s regulations contribute to higher U.S. costs for funding innovative drug research, while U.S. Trade Representative Jamieson Greer said discussions are also underway with France regarding its pricing policies.
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