Overview

• The Wall Street Journal reported the administration has pulled back plans to tariff imported generics, narrowing a broader pharmaceutical trade probe.
• Indian drugmakers, which supply about 47% of U.S. generic prescriptions per IQVIA, stand to avoid near-term disruption to a key export market.
• Pharmaceutical shares rallied after the report suggested generics may be spared, though Financial Express noted the shift is not yet final.
• A separate, earlier-announced 100% tariff on branded and patented drugs was not implemented on October 1 and remains under review.
• Policy divisions persist, with Domestic Policy Council and health advisers warning of higher costs and shortages, while some Commerce officials argue tariffs or quotas could be needed to reduce reliance on foreign suppliers; U.S. Trade Representative Jamieson Greer highlighted that many generics currently enter tariff-free.