A visitor walks next to the logo of the Indian multinational pharmaceutical company Dr. Reddy's Laboratories during the Bio Asia 2026 summit in Hyderabad, Telangana, India, on February 18, 2026.
(Photo by Jwala Kotesh/NurPhoto via Getty Images)U.S. President Donald Trump's proposed tariffs on generic drugs will increase the price of these medicines for patients in the country, Erez Israeli, the chief executive of Indian drugmaker Dr. Reddy's Laboratories, told CNBC's 'Inside India' on Thursday.
Generic drugs are a low-margin business and "this kind of level of tariff cannot be absorbed" by the company, Israeli said, adding it will lead to prices increasing "in the magnitude of the tariff."
On Tuesday, Trump announced that generic drugs imported into the U.S. will face zero tariffs for two years starting August 1, before a 100% levy takes effect in August 2028 and rises to 200% a year later.
The move is aimed at onshoring the generic medicine industry to the U.S., where it makes up for more than 90% of prescriptions.
A visitor walks next to the logo of the Indian multinational pharmaceutical company Dr. Reddy's Laboratories during the Bio Asia 2026 summit in Hyderabad, Telangana, India, on February 18, 2026. (Photo by Jwala Kotesh/NurPhoto via Getty Images)
U.S. President Donald Trump's proposed tariffs on generic drugs will increase the price of these medicines for patients in the country, Erez Israeli, the chief executive of Indian drugmaker Dr. Reddy's Laboratories, told CNBC's 'Inside India' on Thursday.
Generic drugs are a low-margin business and "this kind of level of tariff cannot be absorbed" by the company, Israeli said, adding it will lead to prices increasing "in the magnitude of the tariff."
Israeli also said that two years may not be enough time for companies to move operations to the U.S., as the process could take four to seven years.
On Tuesday, Trump announced that generic drugs imported into the U.S. will face zero tariffs for two years starting August 1, before a 100% levy takes effect in August 2028 and rises to 200% a year later.
The move is aimed at onshoring the generic medicine industry to the U.S., where it makes up for more than 90% of prescriptions.
