This is different:

Trump Plans 100% Tariff on Generic Drugs From August 2028

No, it is something that can be ignored. Why?

Because generic drugs are made from APIs (Active Pharmaceutical Ingredients), many of which are NOT made in the US.

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Global Manufacturing Hubs for APIs
Most active pharmaceutical ingredients (APIs) are produced in a few key regions, with China, India, and the United States being the dominant players.

Global share by region (2023)

China: ~44% of global API production volume Statista

India: ~20% of global API production volume Statista

Other countries combined: ~36% Statista

China is the largest single producer, driven by large-scale manufacturing capacity and cost efficiency. India is the second-largest, with over 1,500 APIs in production and a strong presence in both generic and specialty markets www.alfa-apisector.com.

U.S. prescription API sourcing (2024)

India: Supplies the majority of U.S. generic drug APIs US Pharmacopeia (USP)

European Union (EU): Supplies ~43% of U.S. branded drug API volume US Pharmacopeia (USP)

United States: Produces ~12% of total U.S. prescription API volume (excluding IV fluids) US Pharmacopeia (USP)

China: Contributes ~8% of U.S. API volume US Pharmacopeia (USP)

U.S. dollar value perspective
By value, the U.S. is a major API producer: in 2021, 53% of the $85.6 billion in APIs used in U.S.-consumed medicines were made domestically PhRMA. Europe accounts for another ~33% of that value, with China at 7% PhRMA.

Key takeaways

China leads in total production volume.

India is the second-largest producer and the main supplier for U.S. generics.

Europe is a major supplier for branded APIs.

The U.S. is a significant producer by value, with growing domestic capacity and innovation.

This geographic concentration reflects a mix of cost advantages, regulatory frameworks, and supply chain strategies, with manufacturers often sourcing from multiple regions to balance quality, cost, and resilience.
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Value? The US gets high "value" by manufacturing NEW APIs in the US--so, NEW DRUGS. Anything NOT NEW is made outside the US--allowing the OLD STUFF to be "made cheap" elsewhere in order to free up production space in the US for the NEW APIs/DRUGS.

In other words, irrefutably proving Spankee CAN'T THINK.

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China:

morganlewis.com - Navigating chinas new implementing regulations of the drug administration law