Trump threatens new tariffs on generic drug makers to take effect in two years

According to research firm Orion Market Research, the North American generic drug market was valued at US$176.6 billion in 2024 and is projected to reach US$315.5 billion by 2035.

The Canadian Pharmaceutical Manufacturers and Exporters Alliance said in a statement Wednesday that it has seen the proposed tariff framework in the social media post and is waiting for details from the U.S. administration.

“The announcement describes a two-year period before any tariff is applied to generic pharmaceuticals. As a result, we believe there is sufficient time for industry participants and policymakers to further assess implementation details, supply chain implications, and opportunities to support each other’s domestic manufacturing objectives,” the statement reads.

The trade group also said Trump’s comment signalled an objective to bring drug production back to the U.S. and that Canada’s industry can help in building a connected North American pharmaceutical manufacturing base.

Jim Keon, president of the Canadian Generic Pharmaceutical Association, said in a statement that pharmaceutical supply chains in Canada and the U.S. are highly integrated.

“Canada imports U.S.-manufactured generic medicines, including essential hospital medicines, while Canadian manufacturers rely on active pharmaceutical ingredients, excipients, packaging and other critical inputs made in the U.S. This cross-border trade supports patients, manufacturers and workers on both sides of the border,” he said.

He added that a resilient supply chain for generic drugs is critical to patient care, health-care systems and the security of both Canada and the U.S.

Tariffs, Keon said, would disrupt fragile pharmaceutical supply chains.

Shares of Toronto-based generic drug maker Apotex Health Corp., which is the largest Canadian generic drug company, finished 7.86 per cent lower at $36.55 on Wednesday.

“There is much uncertainty, but also various means by which (Apotex) could mitigate impact, assuming these tariffs are implemented. Any potential headwind adds risk to relatively ambitious growth targets, but we do not yet see cause for serious concern,” wrote Michael Nedelcovych, an analyst at TD Cowen, in a note to investors on Wednesday.

He said large pharmaceutical companies have previously negotiated individual deals with the administration and that, given the two-year grace period, generic pharmaceutical companies may have a similar path available.

Nedelcovych said that according to Apotex, about 80 per cent of its products sold in the U.S. are manufactured in Canada or the U.S., with the remaining 20 per cent coming from other nations including India and China.

Apotex did not immediately respond to a request for comment.

The latest round of trade tensions began Monday after Trump signed a series of executive orders that would impose a separate 50 per cent tariff on a range of goods coming from Canada.

This report by The Canadian Press was first published July 22, 2026.

Companies in this story: (TSX: APTX)

Daniel Johnson, The Canadian Press

by The Canadian Press

Trump threatens new tariffs on generic drug makers to take effect in two years

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