When the Trump administration unveiled the Section 232 pharmaceutical tariff, buried in the fine print of a complex legal proclamation was one of the most consequential carve-outs in recent healthcare policy: all generic drugs and biosimilars are fully exempt. No tariff. Zero percent. Regardless of where they're manufactured.
Why Are Generics Exempt?
The tariff's stated purpose is to bring patented drug manufacturing back to the United States and reduce dependence on foreign supply chains for proprietary medications. Generic drugs, by definition, are not patented — their patents have expired, which is precisely why multiple manufacturers can produce them competitively.
Taxing generic drugs would primarily hurt American patients without generating the desired reshoring of pharmaceutical innovation. Generics are already produced in massive quantities globally (including significantly in India), and taxing them would simply increase costs for the 90% of Americans who fill generic prescriptions.
The Scale of This Exemption
Consider the numbers:
- 90% of US prescriptions are filled with generic drugs
- Over 21,000 generic drug products are approved by the FDA
- Generic drugs save the US healthcare system approximately $313 billion per year
The exemption for generics means that the vast majority of everyday prescriptions — metformin for diabetes, lisinopril for blood pressure, sertraline for depression, atorvastatin for cholesterol — face zero tariff impact.
What About Biosimilars?
Biosimilars are the biologic equivalent of generics — copies of complex protein-based drugs (like Humira or Herceptin) developed after the original's patents expire. The FDA's Purple Book lists approved biosimilars. Like generics, biosimilars are fully exempt from the Section 232 tariff.
This matters enormously for patients on expensive biologics. Humira biosimilars like Hadlima, Hyrimoz, and Cyltezo — which can cost 80% less than original Humira — are all fully exempt. Meanwhile, original Humira from AbbVie pays 0% through the MFN deal.
The Practical Advice
If you're currently taking a brand-name drug subject to the 100% tariff, ask your doctor or pharmacist a simple question: "Is there an FDA-approved generic or biosimilar for my medication?"
If the answer is yes — and if it is therapeutically appropriate for your condition — switching before July or September 2026 could completely eliminate your tariff exposure.
Use our drug search tool to check the status of your specific medication, and visit our savings guide for a complete list of resources to help you navigate the tariff.