100% Tariffs on Foreign Brand-Name Pharmaceuticals Announced

April 10, 2026

A Tough Dose: 100% Tariffs Target Foreign-Manufactured Brand-Name Pharmaceuticals

Adika Aniedobe, Stephen Forster, Dr. Christian Fulda, Taylor Goodspeed, Julia McEvoy, Andrew McGirty, Rajeev Muttreja, Heather O'Shea, Schuyler Schouten, Cristiana Spontoni Jones Day + Follow Contact LinkedIn Facebook X Send Embed

The Trump administration has moved to impose a 100% tariff on imports of brand-name, patented pharmaceutical products and ingredients, while extending lower rates for jurisdictions that have entered into bilateral agreements with the United States, and authorizing additional company-specific agreements to "onshore" manufacturing and tailor pricing practices in exchange for tariff relief.

On April 2, 2026, following a Department of Commerce investigation under Section 232 of the Trade Expansion Act, President Trump issued a Proclamation imposing a 100% tariff on brand-name, patented pharmaceutical products and ingredients. The tariff takes effect in 120 days for certain large companies and in 180 days for smaller companies.

The administration first threatened this tariff last year but seemed to shift its attention to the Most Favored Nation ("MFN") Drug Pricing policy, announced in May 2025. This policy requires manufacturers to align drug prices with the lowest prices paid for such drugs in comparable developed countries. In August 2025, a separate executive order targeted increasing domestic pharmaceutical production. To date, 16 manufacturers have entered into MFN agreements, many including commitments to onshore production. CMS has proposed various payment models for MFN pricing implementation, including the voluntary Medicaid GENEROUS model and the mandatory Medicare GLOBE (Part B) and GUARD (Part D) models. CMS is currently reviewing applications and comments on these models.

The recently announced tariff follows a Department of Commerce investigation that concluded, notwithstanding these efforts, that U.S. reliance on foreign pharmaceutical manufacturing—with roughly 53% of domestically distributed drugs produced overseas—poses a threat to national security and public health. The Proclamation ratifies these manufacturer-specific MFN agreements and encourages Commerce to pursue more.

Key Reductions in the Tariff

The Proclamation provides lower rates for pharmaceutical imports from parties that have negotiated agreements with the United States:

• 15% tariff for the European Union, Japan, Korea, Switzerland, and Liechtenstein;
• 10% reducing to 0% tariff for the United Kingdom;
• 0% tariff for manufacturers with both MFN and onshore production agreements; and
• 20% tariff for manufacturers with only an onshore production agreement. Key Exemptions from the Tariff

The Proclamation clarifies that the new tariff exempts:

• Generic pharmaceutical products, biosimilars, and associated ingredients (though the administration notes this will be reassessed in one year); and
• Orphan drugs, animal health drugs, and certain specialty products from trade deal countries or that meet an urgent public health need. This tariff continues the administration's trend of increasing attention on the pharmaceutical industry's trade and manufacturing frameworks.

Send Print Report

Latest Posts

• A Tough Dose: 100% Tariffs Target Foreign-Manufactured Brand-Name Pharmaceuticals
• EU Geopolitical Risk Update - Key Policy & Regulatory Developments No. 126
• “A-Eye” on Coverage: Maximizing Insurance for AI Risks Amid Emerging Exclusions
• Delaware's Bid for Digital Asset Leadership: Senate Bills 16 and 19 Propose a Modernized Banking and Stablecoin Framework
• CJEU Clarifies the Standard for Accessing Evidence in Competition Damages Cases See more »

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
Attorney Advertising.

©
Jones Day

Written by:

Jones Day Contact + Follow Adika Aniedobe + Follow Stephen Forster + Follow Dr. Christian Fulda + Follow Taylor Goodspeed + Follow Julia McEvoy + Follow Andrew McGirty + Follow Rajeev Muttreja + Follow Heather O'Shea + Follow Schuyler Schouten + Follow Cristiana Spontoni + Follow more less

PUBLISH YOUR CONTENT ON JD SUPRA

• ✔ Increased readership
• ✔ Actionable analytics
• ✔ Ongoing writing guidance Join more than 70,000 authors publishing their insights on JD Supra

Start Publishing »

Published In:

Brand Name Prescription Drugs + Follow Drug Pricing + Follow Generic Drugs + Follow Healthcare + Follow Life Sciences + Follow Most-Favored Nations + Follow National Security + Follow Patient Access + Follow Pharmaceutical Industry + Follow Prescription Drugs + Follow Section 232 + Follow Tariffs + Follow Trump Administration + Follow U.S. Commerce Department + Follow US Trade Policies + Follow Administrative Agency + Follow Health + Follow International Trade + Follow Science, Computers & Technology + Follow more less

Jones Day on:

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra: Sign Up Log in ** By using the service, you signify your acceptance of JD Supra's Privacy Policy.* - hide - hide