Trump imposes 100% tariffs on patented pharmaceuticals

White House: Fact Sheets

Published April 2nd, 2026

Detected April 2nd, 2026

Summary

The White House announced 100% tariffs on patented pharmaceuticals and ingredients under Section 232 of the Trade Expansion Act of 1962, citing national security concerns. The tariffs will take effect in 120 days for large companies and 180 days for smaller companies, with exemptions available for companies entering pricing and onshoring agreements with federal agencies.

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What changed

President Trump imposed 100% tariffs on patented pharmaceutical products and ingredients effective April 2, 2026, under Section 232 national security authority. The investigation found that pharmaceutical imports threaten national security, with the tariffs spurring approximately $400 billion in new domestic investment commitments. Reduced tariffs of 15% apply to products from EU, Japan, Korea, and Switzerland, with lower rates for UK per existing agreements.

Companies may qualify for reduced or eliminated tariffs by entering into Most Favored Nation pricing agreements with HHS and onshoring agreements with Commerce (0% tariff through January 20, 2029), or onshoring agreements alone (20% tariff). Generic pharmaceuticals and biosimilars are exempt for one year. Specialty drugs including orphan drugs and animal health products are exempt if from trade deal countries or meet urgent public health needs. Regulated entities should engage Commerce and HHS immediately to explore agreement pathways and ensure compliance with audit and enforcement provisions.

What to do next

Identify all patented pharmaceutical products in your supply chain and assess country of origin for affected imports
Evaluate eligibility for onshoring agreements with Commerce and MFN pricing agreements with HHS to reduce tariff exposure
Prepare compliance documentation for monitoring and audit requirements under Section 232 provisions

Penalties

External audits and tariff increases on future and past imports for non-compliance

Source document (simplified)

Fact Sheets

Fact Sheet: President Donald J. Trump Bolsters National Security and Strengthens U.S. Supply Chains by Imposing Tariffs on Patented Pharmaceutical Products

The White House

April 2, 2026

BOLSTERING NATIONAL SECURITY: Today, President Donald J. Trump imposed tariffs on patented pharmaceuticals and their ingredients under Section 232 of the Trade Expansion Act of 1962 to bolster American national security and public health.

President Trump imposed a 100% tariff on patented pharmaceutical products and ingredients.
The tariffs will come into effect in 120 days for certain large companies, and 180 days for smaller companies.
Trade Deal Countries:
- If a pharmaceutical product is from the European Union, Japan, Korea, or Switzerland and Liechtenstein, a 15% tariff will apply. If a pharmaceutical product is from the United Kingdom, a lower tariff will apply, subject to the recently concluded UK pharmaceutical agreement. Onshoring and pricing agreements:
- For companies that enter into Most Favored Nation (MFN) pricing agreements with the Department of Health and Human Services (HHS) and onshoring agreements with the Department of Commerce, a 0% tariff will apply through January 20, 2029. For companies that only enter into onshoring agreements with the Department of Commerce, a 20% tariff will apply.The Department of Commerce and HHS will provide pathways for companies to enter into onshoring and MFN pricing deals with the U.S. Government.
- Generic pharmaceuticals: Generic pharmaceutical products, biosimilars, and associated ingredients are not subject to tariffs at this time. This will be reassessed in one year.
Specialty pharmaceutical products: Orphan drugs, drugs for animal health, and certain other specialty pharmaceutical products will be exempt, if they are from trade deal countries or meet an urgent public health need.
The Proclamation establishes strong monitoring and enforcement mechanisms, including external audits and tariff increases on future and past imports.
STRENGTHENING AMERICAN SUPPLY CHAINS: President Trump recognizes that America must manufacture pharmaceutical products in order to be safe, secure, and healthy.
President Trump imposed these tariffs following an extensive investigation conducted by the Secretary of Commerce under Section 232 of the Trade Expansion Act of 1962, as amended, to determine the effects on national security of imports of pharmaceuticals, pharmaceutical ingredients, and related products.
The investigation found that patented pharmaceuticals and associated pharmaceutical ingredients are being imported into the United States in such quantities and under such circumstances as to threaten to impair our national security.
The impending Section 232 tariffs have already spurred approximately $400 billion in new investment commitments from U.S. and foreign pharmaceutical companies, which will be spent in the United States during President Trump’s current term in office.
A self-sufficient domestic manufacturing and industrial base for pharmaceutical products is vital for the ability to support national defense requirements and public health.
Despite being the world leader in research and development for most innovative pharmaceuticals, the U.S. is heavily reliant on imports, threatening to limit U.S. access to life-saving medications in the event of global supply chain disruption.
BUILDING ON PROMISES KEPT TO PUT AMERICA FIRST: This action builds on President Trump’s commitment to put America first, protect our national security, and strengthen American manufacturing across all sectors.
In May 2025, President Trump signed an Executive Order to remove regulatory barriers and facilitate the restoration of a robust domestic manufacturing base for prescription drugs, including key ingredients and materials necessary to manufacture prescription drugs.
In August 2025, President Trump signed an Executive Order to ensure American pharmaceutical supply chain resilience by filling the strategic active pharmaceutical ingredients reserve.
President Trump’s Administration has launched Section 232 investigations in adjacent sectors such as personal protective equipment, medical consumables, and medical equipment and devices, as well as robotics. These investigations will help ensure that harmful imports in any strategic sector do not compromise national security.