Trump imposes 100% tariff on patented pharmaceutical products

President Donald Trump imposed tariffs on patented pharmaceutical products and ingredients under Section 232 of the Trade Expansion Act of 1962, according to a White House statement.

The tariffs set a 100% rate on patented pharmaceutical products and ingredients. Implementation will begin in 120 days for large companies and 180 days for smaller companies.

Products from the European Union, Japan, Korea, Switzerland and Liechtenstein face a 15% tariff rate. The United Kingdom receives a lower tariff rate under a recently concluded pharmaceutical agreement.

Companies entering Most Favored Nation pricing agreements with the Department of Health and Human Services and onshoring agreements with the Department of Commerce will receive a 0% tariff through January 20, 2029. Companies with only onshoring agreements face a 20% tariff.

Generic pharmaceutical products, biosimilars and associated ingredients are exempt from the tariffs. This exemption will be reviewed in one year.

Specialty products including orphan drugs, animal health drugs and other specialty pharmaceuticals from trade deal countries or those meeting urgent public health needs will be exempt.

The Department of Commerce and Department of Health and Human Services will establish processes for companies to enter onshoring and pricing agreements. The proclamation includes monitoring and enforcement mechanisms with external audits and potential tariff increases on imports.

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