Shares in Generic-Drug Makers Fall After Trump's Tariff Plan

By Adria Calatayud

Shares in several European and Asian makers of generic medicines fell after President Trump said the U.S. would place tariffs on such drugs starting in August 2028.

In European midday trading Wednesday, shares in Switzerland's Sandoz were down 3%. Germany's Fresenius and London-listed Hikma Pharmaceuticals were down 1.4% and 0.8%, respectively.

The stock losses in Europe tracked earlier declines in Asia. India's Lupin closed 4.3% lower, Aurobindo Pharma fell 3%, while Dr. Reddy's Laboratories and Glenmark Pharmaceuticals both dropped around 2%.

Trump wrote on his Truth Social platform that he would give two years for drugmakers to move plants to the U.S. before introducing the levies, starting at 100% from August 2028 for one year before increasing them to 200%.

In response, Sandoz said it shared the goal of improving affordability and access to medicines in the U.S., but that it was too early to assess the implications of the announcement for its manufacturing footprint or investment decisions.

"We will continue to monitor developments closely and engage constructively with relevant stakeholders," a spokesman said.

Analysts said generic-drug makers operate on thinner margins than manufacturers of branded medicines and might struggle to move production to the U.S. due to pricing pressures.

Trump's proposal might be the starting point for negotiations with generics manufacturers and the tariff proposal seems unlikely to be implemented in its current form given it could result in cost increases for U.S. patients, analysts at J.P. Morgan wrote in a note.

The plan will hit predominantly China and India, where most generic drugs are manufactured, Vontobel analysts said.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

July 22, 2026 06:49 ET (10:49 GMT)