Trump Administration announces 100% tariffs on pharmaceuticals
On 2 April 2026, the Trump Administration announced that it would be imposing 100% tariffs on patented pharmaceutical products and ingredients, following a Section 232 investigation into the effects of pharmaceutical and pharmaceutical ingredient imports on US national security.
Pharmaceutical products imported from countries and regions with US trade deals—namely, the European Union, Japan, Korea, Switzerland, and Lichtenstein—will face tariffs of only 15%, while products from the United Kingdom will be subject to lower rates per the US-UK trade deal.
The announcement, however, carves out several exceptions to the tariffs. Specifically, pharmaceutical products imported from countries and regions with US trade deals—namely, the European Union, Japan, Korea, Switzerland, and Lichtenstein—will face tariffs of only 15%, while products from the United Kingdom will be subject to lower rates per the US-UK trade deal. Additionally, tariffs will not be placed on products from pharmaceutical companies that have entered into MFN deals with the Administration; companies that enter into onshoring agreements will face only 20% tariffs. Generics, biosimilars, and specialty pharmaceuticals—such as orphan drugs and drugs for animals—are currently excluded from the tariffs.
The tariffs will take effect on 31 July 2026 for 17 major pharmaceutical companies specified by the Administration; all other companies will begin facing the tariffs on 29 September 2026.