On July 22, 2026, Chinese media outlet First Financial reported on the impact on China's pharmaceutical exports, following US President Trump's announcement that he would impose a 100% tariff on generic drugs starting two years later.

The article introduced that President Trump announced on the 21st that all generic drugs imported into the United States would have zero tariffs for two years starting from August 1, followed by a 100% tariff for one year after the two-year period, and then further increased to 200%.

It then stated that the policy's aim is to bring the production of generic drugs back to the US, and companies that fail to do so within the deadline will face sanctions through tariffs. Meanwhile, for patented drugs, brand-name drugs, and innovative drugs, the current situation will be maintained as the existing policies are deemed effective.

The article then examined the impact on China's pharmaceutical exports to the US. It noted that currently, the core of exports are tariff-exempt Active Pharmaceutical Ingredients (APIs), with export value in 2025 reaching 3.5 times that of finished pharmaceutical products. It also stated that US exports of finished pharmaceutical products, including generic drugs subject to tariffs, are already largely stagnant due to tariff effects.

Furthermore, a researcher involved in international cooperation in China's pharmaceutical sector explained that "the global market, especially the US pharmaceutical market, is highly dependent on Chinese-produced APIs, and an urgent replacement would lead to a sharp rise in drug prices and supply shortages." While indicating that China holds a strong position in overall pharmaceutical exports, the researcher pointed out that when it comes to generic drug exports, "the short term is controllable, but the medium to long term will face pressure."

The article also mentioned that this researcher stated there is significant uncertainty in the US tariff policy itself, and that the next administration might make a different decision before its effective date in August 2028, after the US presidential election.

Furthermore, it was reported that the US healthcare system itself is heavily dependent on Chinese-produced drugs, and therefore, if high tariffs are actually implemented, it could lead to domestic drug shortages and price increases. The researcher suggested that there is a high probability that the US will resort to creating exemption lists or applying discounts. (Editor/Translator: Kawajiri)