Following the conclusion of the Section 232 investigation launched in August 2025, US President Donald Trump announced on 2 April 2026 a sweeping new tariff policy targeting pharmaceutical imports. The measure introduces a 100% tariff on all imported patented medicines and their related ingredients, marking a significant shift in US trade and industrial strategy in the healthcare sector.
Phased rollout and differentiated rates
The implementation timeline varies by company size. Large pharmaceutical firms will be subject to the new tariffs within 120 days, while smaller companies will have a longer adjustment window of 180 days.
However, the policy includes differentiated treatment for key allied markets. Pharmaceutical products imported from the European Union, Japan, South Korea, Switzerland, and Liechtenstein will be subject to a reduced tariff rate of 15%. Imports from the United Kingdom will face an even lower rate, although the exact percentage has not been specified.
Exemptions and incentives for onshoring
The framework also introduces incentives tied to pricing and manufacturing commitments. Companies that have entered into Most Favoured Nation (MFN) pricing agreements with the Department of Health and Human Services (HHS), and have simultaneously signed onshoring agreements with the Department of Commerce, will benefit from a full exemption from tariffs until 20 January 2029. By contrast, companies that have only signed onshoring agreements will face a reduced tariff rate of 20%.
Notably, certain categories of medicines are currently excluded from the new duties. Generic and biosimilar drugs, along with their associated ingredients, remain fully exempt, although this provision is set to be reviewed in one year. Additional exemptions are предусмотрed for orphan drugs, veterinary medicines, and other specialised medicinal products.
The new tariff regime underscores Washington’s dual objective of strengthening domestic pharmaceutical manufacturing capacity while maintaining strategic trade relationships with selected partners.