Trump imposes Section 232 tariffs on patented pharmaceutical imports

President Trump on April 2, 2026 issued a proclamation imposing tariffs on patented pharmaceutical products and their ingredients under Section 232 of the Trade Expansion Act of 1962. The tariffs, which can reach as high as 100%, were imposed to address the national security threat that the administration believes is posed by US reliance on foreign sources of such merchandise. The tariffs will take effect on July 31, 2026 for certain large pharmaceutical companies listed in Annex III to the proclamation and September 29, 2026 for all others.

The tariffs apply to patented pharmaceutical articles, which the annexes to the proclamation define as products that are subject to a valid, unexpired US patent, are listed in the FDA’s Orange Book or Purple Book, and include ingredients, including APIs and key starting materials, for such articles. Generic pharmaceuticals, biosimilars, and their associated ingredients are currently expressly excluded from the tariffs.

The proclamation establishes a tiered tariff structure based on several factors, including the country of origin and whether the importer has entered into agreements with the US government:

• Default rate for patented pharmaceuticals and ingredients: 100%
• EU member states, Japan, South Korea, Switzerland/Liechtenstein: 15%
• United Kingdom: 10%, subject to further reduction under the US-UK pharmaceutical agreement
• Companies with approved onshoring plans: 20%, rising to 100% on April 2, 2030
• Companies with most-favored nation pricing and onshoring agreements: 0% through January 20, 2029

If a product is subject to more than one duty rate, the lowest rate applies. For most covered products, the Section 232 tariff rates are all-inclusive, meaning they include the base MFN rate that would otherwise apply under the Harmonized Tariff Schedule of the United States. For UK-origin products, the 10% rate stacks on top of the applicable MFN tariff rate.

Imports of US-origin pharmaceutical products are not subject to the tariffs. The annexes provide a zero rate for pharmaceutical products with an API packaged in dosage form that is a product of the United States.

The administration said the tariffs follow a Section 232 investigation into the effects on national security of imports of pharmaceuticals, pharmaceutical ingredients, and related products. The investigation found that the United States is heavily reliant on imports despite being a leader in pharmaceutical research and development, and the secretary argued that this dependence threatens US access to life-saving medications in the event of global supply chain disruptions.

The proclamation authorizes the secretary of Commerce to increase tariff rates on companies that fail to fulfill commitments under onshoring plans or agreements, including the potential to impose tariffs retroactively in cases of fraud or deliberate misrepresentation. The new regime also has built-in escalators that will increase rates in several years absent further executive action.