Presidential Clampdown: Pharma Imports Threaten U.S. Drug Supply?
Published Date: 4/9/2026
Presidential Document
Summary
The U.S. government found that importing too many medicines and their ingredients could hurt our national security and economy. To fix this, new rules will limit some pharmaceutical imports to protect access to important drugs, especially during global problems. These changes mainly affect drug makers and importers and will start soon, aiming to keep life-saving medicines available and support U.S. production.
Analyzed Economic Effects
9 provisions identified: 3 benefits, 3 costs, 3 mixed.
100% Tariff on Patented Drug Imports
The proclamation imposes a 100 percent ad valorem duty on imports of patented pharmaceuticals and associated active pharmaceutical ingredients listed in Annex I. This 100% rate applies except where other clauses in the proclamation specify lower or zero rates.
Lower Tariff for Onshoring Plans (Then Phase-In)
Products of companies with Secretary-approved onshoring plans face a 20 percent ad valorem duty now, but that 20 percent rate shall increase to 100 percent on April 2, 2030. Onshoring plans must be approved and monitored by the Secretary.
Zero Tariff for MFN Pricing Agreements (Until 2029)
Companies that have entered into most-favored-nation (MFN) pharmaceutical pricing agreements with the Secretary of Health and Human Services are eligible for a zero ad valorem tariff rate until January 20, 2029. The proclamation also ratifies company-specific agreements listed in Annex II.
Country-Specific Tariff Rates
The proclamation sets a 15 percent ad valorem tariff for patented pharmaceuticals from Japan, the European Union, the Republic of Korea, and Switzerland/Liechtenstein jointly. Products of the United Kingdom face a 10 percent rate, with the UK rate possibly reducing to zero per any future U.S.–UK pharmaceutical pricing agreement.
Zero Tariff Exemptions for Special Products
The proclamation sets a zero ad valorem tariff for drugs where all approved indications are designated orphan drugs, nuclear medicines, plasma-derived therapies, fertility treatments, cell and gene therapies, antibody–drug conjugates, medical countermeasures for CBRN threats, other specialty pharmaceutical products identified by the Secretary, and animal health products if certain trade/security or urgent health conditions are met.
Generics and Associated Ingredients Excluded
Generic pharmaceuticals, biosimilars, and their associated ingredients are not subject to section 232 tariffs 'at this time.' The Secretary must inform the President within 1 year if circumstances suggest a need to take action on generic imports.
Onshoring Criteria, Reporting, and Enforcement
The Secretary (with HHS) will publish criteria for onshoring plans, require company periodic reports (which may be audited), monitor compliance, and may reimpose tariffs prospectively and retroactively or impose other penalties if a company is found to have committed fraud or misled the Government about onshoring commitments.
Customs Administration, Drawback, and U.S.-Origin Exclusion
Customs and Border Protection may take necessary measures to administer these tariffs and importers must provide information to CBP. Drawback (refund) is available for duties imposed, and U.S.-origin pharmaceutical products are not subject to these tariffs at this time.
Negotiation Requirement and 90-Day Update
The Secretary of Commerce and the Secretary of Health and Human Services are directed to pursue or continue negotiations of agreements to address the national security threat from imported patented pharmaceuticals, and to update the President on negotiation progress within 90 days of this proclamation (dated April 2, 2026).
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