Swiss generic pharmaceutical company Sandoz announced Wednesday that it plans to continue engaging with U.S. policymakers following a social media threat from President Donald Trump to impose steep tariffs on generic drugmakers that don’t manufacture their products on American soil.
In a post on X on Tuesday, Trump warned that generic drugmakers would face a 100% tariff beginning in August 2028 if they fail to produce medicines domestically, with that penalty climbing to 200% the following year.
According to the U.S. Food and Drug Administration, generic drugs make up more than 90% of all medicines sold in the United States.
In a statement, Sandoz expressed alignment with the administration’s broader goals, saying, “We share the goal of improving affordability and access to medicines in the United States.” The company added it would keep working with policymakers to find the best path forward — a development first reported by the Wall Street Journal.
The announcement comes after Sandoz revealed in 2024 that it planned to shut down its sole U.S. manufacturing location on Long Island, New York, by around the end of 2026. The company said it is not yet in a position to evaluate what the tariff threat could mean for its manufacturing operations or future investment plans.
Vontobel analyst Stefan Schneider noted that the Trump administration appears to be trying to reverse the trend of moving generic drug production to countries with lower operating costs. However, he cautioned that relocating manufacturing back to the U.S. would likely drive up the price of generic drugs for American consumers.
Schneider also pointed out that any new trade rules would hit China and India the hardest, since the bulk of generic drug production takes place in those countries. Still, Sandoz would also feel the pressure, given that roughly 22% of its sales come from North America while it has very little production capacity there.
Sandoz shares dropped approximately 3% when markets opened Wednesday morning.
