The Trump administration is reportedly planning to exclude imported generic drugs from tariffs.

White House spokesman Kush Desai told the Wall Street Journal that "the administration is not actively discussing imposing Section 232 tariffs against generic pharmaceuticals." A Commerce Department representative echoed that the ongoing investigation into pharmaceutical imports under Section 232 of the Trade Expansion Act of 1962 would not result in tariffs on generics.

The decision impacts several major companies, including Teva Pharmaceutical Industries Ltd (NYSE:TEVA), Amneal Pharmaceuticals, Inc (NASDAQ:AMRX), Dr. Reddy’s Laboratories Ltd (NYSE:RDY), Amphastar Pharmaceuticals, Inc (NASDAQ:AMPH), Viatris Inc (NASDAQ:VTRS). It also marks a significant narrowing of the scope of the Commerce Department's pharmaceutical tariff probe, which ...