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U.S. to impose up to 100% tariff on patented drugs
Move targets foreign pharmaceutical supply chains over national security concerns.
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IANS - Thu, 02, Apr 2026
- 23:29 EDT
- 24
President Donald Trump / IANS
The United States will impose tariffs of up to 100% on imported patented pharmaceuticals, with President Donald Trump citing national security risks and reliance on foreign supply chains.
In a proclamation issued Thursday, Trump said pharmaceuticals and related ingredients “are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.”
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The measure targets patented drugs and active pharmaceutical ingredients, which are critical for civilian healthcare and military readiness. The administration warned that dependence on overseas production could disrupt access to “life-saving medications” during geopolitical or economic crises.
Under the order, most imported patented pharmaceuticals will face a 100% ad valorem duty. Companies that commit to shifting production to the United States will face a reduced 20% tariff, rising to 100% after four years.
The proclamation also outlines differentiated tariff rates for key trading partners. Imports from the European Union, Japan, South Korea, and Switzerland will face lower tariffs of around 15%, while certain specialized categories such as orphan drugs, nuclear medicines, and gene therapies will remain exempt.
Generic drugs and biosimilars are excluded from the tariff regime for now. “Generic pharmaceuticals and their associated ingredients shall not be subject to tariffs … at this time,” the proclamation said.
ALSO READ: Steep U.S. tariffs strained ties with India
Officials said the policy is part of a broader effort to rebuild domestic pharmaceutical manufacturing and secure supply chains. U.S. Trade Representative Jamieson Greer said the focus extends beyond tariffs to long-term production shifts.
“It’s less what’s the tariff level, and it’s more all of the actual deals we’ve been making with countries and companies to make sure that the supply chains are secure that we’re making here in America,” Greer said.
He added that companies are already responding. “We see concrete going in, superstructures going up on new pharmaceutical facilities,” he said, pointing to increased domestic investment.
The tariffs will be implemented in phases beginning July 31, 2026, with some companies receiving delayed timelines based on existing agreements.
The move is expected to have broad implications for global pharmaceutical trade, particularly for countries that supply finished drugs and raw materials.
India and China are among the largest producers of generic medicines and active pharmaceutical ingredients, supplying a significant share of the U.S. market. While generics are currently exempt, any future expansion of tariffs could affect pricing and supply chains.
The administration invoked Section 232 of the Trade Expansion Act, which allows the president to restrict imports deemed a threat to national security. The provision has previously been used for tariffs on steel and aluminum, and its extension to pharmaceuticals marks a significant escalation in trade policy.
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