President Trump has issued a proclamation imposing Section 232 tariffs on imports of patented pharmaceuticals and their ingredients.
Tariffs
- A 100 percent tariff will be imposed on patented pharmaceuticals and associated pharmaceutical ingredients identified in Annex I.
- A 20 percent tariff will be imposed on patented pharmaceuticals and APIs produced by companies that have plans approved by the Department of Commerce to onshore production of such. This tariff rate will increase to 100 percent on April 2, 2030.
- A 15 percent tariff will be applied to patented pharmaceuticals and APIs that are products of Japan, the European Union, South Korea, Switzerland, and Liechtenstein.
- A 10 percent tariff will be applied to patented pharmaceuticals and APIs that are products of the United Kingdom.
Exceptions
- generic pharmaceuticals and their APIs, including biosimilar products (to be re-evaluated by April 2027)
- pharmaceuticals and APIs listed in Annex IV
- pharmaceuticals and APIs produced by companies that have or are negotiating pricing agreements with Department of Health and Human Services and onshoring agreements with the DOC (this exception is valid through Jan. 20, 2029)
- imports of U.S.-origin pharmaceutical products
- orphan drugs, drugs for animal health, and certain other specialty pharmaceutical products (e.g., nuclear medicines, plasma-derived therapies, fertility treatments, cell and gene therapies, antibody drug conjugates, and medical countermeasures related to chemical, biological, radiological, and nuclear threats) that (1) are projects of a jurisdiction that has a current or forthcoming trade and security framework agreement with the U.S. or (2) meet an urgent U.S. health need
Effective Dates
- 12:01 a.m. EDT on July 31, 2026, for companies listed in Annex III
- 12:01 a.m. EDT on Sept. 29, 2026, for other companies
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