Swiss generic drugmaker Sandoz said it would continue discussions with policymakers after U.S. President Donald Trump threatened the industry with steep tariffs unless drugmakers manufacture medicines domestically.
Tariff Threat
Trump said in a post that generic drugmakers will have to manufacture medicines for the U.S. locally or be hit with a 100% tariff from August 2028 followed by a 200% tariff starting the year after.
More than 90% of medicines sold in the U.S. are generics, according to the U.S. Food and Drug Administration. Sandoz said it shares the goal of improving affordability and access to medicines in the United States and will continue discussions with policymakers on how to best achieve this.
Sandoz said in 2024 that it would close its only U.S. manufacturing site on Long Island, New York, around the end of 2026. It said it was too early to assess any implications for manufacturing operations or future investment decisions.
Vontobel analyst Stefan Schneider said the U.S. government is aiming to reverse the shift of generic drug production to lower-cost countries, although bringing manufacturing back would likely raise generic drug prices in the United States.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
