Americans could soon pay double or triple for common prescription drugs if the White House follows through on threatened tariffs against generic medicines, the head of one of the world’s largest generic drugmakers warned this week.
Richard Saynor, CEO of Swiss pharmaceutical giant Sandoz, told CNBC that manufacturers won’t absorb massive new costs — they’ll either raise prices on patients or stop supplying certain medications to the U.S. market altogether.
“Patients pay the tariff,” Saynor said bluntly. “Any business is not going to systematically continue to supply a product at a material loss. So you either then have a choice of putting the price [up] or not supplying the product.”
Trump Administration Eyes 200% Tariff on Imported Generics
President Trump announced in July that imported generic drugs could face 100% tariffs starting in 2028, potentially rising to 200% the following year. The move aims to pressure pharmaceutical companies to shift manufacturing operations to American soil.
Generic medications — identical copies of brand-name drugs sold after patent protections expire — currently enjoy exemptions from the administration’s Section 232 pharmaceutical tariffs. That shield could disappear within two years.
The timing matters for millions of families. Generic drugs account for 90% of prescriptions filled in America but represent only 20% of total drug spending, according to industry data. They keep healthcare costs manageable for seniors on fixed incomes and working families without premium insurance plans.
What Higher Costs Would Mean for Your Medicine Cabinet
A 100% tariff effectively doubles the wholesale cost before medicines reach pharmacy shelves. Insurance companies and pharmacy benefit managers typically pass those increases directly to consumers through higher copays and deductibles.
For Americans already rationing insulin or skipping doses to stretch prescriptions, the math gets brutal fast. A $20 monthly generic could jump to $40 or more. Seniors taking five or six maintenance medications could see their pharmacy bills climb by hundreds of dollars annually.
Saynor’s alternative — drugmakers simply refusing to supply certain medications at a loss — raises the specter of shortages for common treatments. The U.S. already faces periodic shortages of generic antibiotics, cancer drugs, and other essential medicines.
The White House has not responded to requests for comment on how it plans to prevent price spikes or supply disruptions if the tariff policy moves forward.
Key Points
- Generic drugs could face 100-200% tariffs starting in 2028 under Trump administration plan
- Sandoz CEO says companies will raise prices or stop supplying medicines rather than absorb costs
- Generics represent 90% of U.S. prescriptions but keep costs down for families and seniors
https://www.cnbc.com/2026/09/08/pharma-tariffs-trump-generic-drugs-sandoz-cmd-stock.html – September 08, 2026
