Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients Into the United States

This proclamation, issued under section 232 of the Trade Expansion Act, imposes a 100 percent ad valorem tariff on imports of patented pharmaceuticals and associated pharmaceutical ingredients, with a 20 percent rate for companies with onshoring plans approved by the Secretary of Commerce (rising to 100 percent on April 2, 2030), a 15 percent rate for products of Japan, the European Union, the Republic of Korea, and Switzerland and Liechtenstein jointly, a 10 percent rate for the United Kingdom, and a zero rate for orphan drugs, certain specialty products, and companies with Most-Favored-Nation pricing agreements (until January 20, 2029). Generic pharmaceuticals are excluded at this time. Tariffs take effect July 31, 2026 for companies listed in Annex III and September 29, 2026 for others. The Secretary of Commerce and the Secretary of Health and Human Services are directed to pursue negotiations of agreements addressing the national security threat and update the President within 90 days.

Importers of patented pharmaceuticals and associated pharmaceutical ingredients to Pay the applicable ad valorem tariffs on imports of patented pharmaceuticals and associated pharmaceutical ingredients entered for consumption or withdrawn from warehouse for consumption (July 31, 2026 (12:01 a.m. EDT) for companies listed in Annex III; September 29, 2026 for other companies). Companies with qualifying onshoring plans to Submit periodic reports to the Secretary of Commerce on progress toward fulfilling onshoring milestones, which may be required to be audited by an external auditing firm (unclear). Importers to Provide to U.S. Customs and Border Protection information necessary to carry out the proclamation (unclear). Parties admitting covered products into U.S. foreign trade zones to Admit covered products (except those eligible for domestic status) into U.S. foreign trade zones as "privileged foreign status" subject to applicable ad valorem duty rates upon entry for consumption (On or after the effective date of the proclamation).

No known legal challenges.