US extends zero tariffs on imported generic drugs for 2 years, boosting pharma stocks.

President Donald Trump announced that generic drugs imported into the US will continue to have zero tariffs for two more years starting August 1, 2024. After this period, tariffs will rise to 100% for one year and then 200% thereafter. The policy aims to encourage pharmaceutical manufacturing to return to the US, with penalties for companies that do not build plants domestically. The announcement caused major drug stocks like Summit Therapeutics and Axsome Therapeutics to surge. This move is part of Trump's broader effort to lower drug costs and align US prices with other wealthy countries.