BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
1. The Secretary of Commerce recently provided me with a report on the investigation into how imports of pharmaceuticals and their ingredients affect the national security of the United States, under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862). Based on the investigation’s findings and considering the connection between the nation’s economic welfare and national security, the Secretary concluded that the importation of pharmaceuticals and associated active pharmaceutical ingredients (APIs) presents a threat to U.S. national security.
2. The Secretary identified that the current levels and conditions of pharmaceutical imports pose a risk to national security and the economy. Despite leading the world in research and development of innovative pharmaceuticals, the U.S. heavily depends on imports, which threatens access to critical medications in case of global supply chain disruptions. The Food and Drug Administration noted that by 2025, 53 percent of patented pharmaceuticals distributed domestically will be produced abroad, with only 15 percent of patented APIs manufactured domestically.
3. The Secretary emphasized that patented pharmaceuticals and their ingredients are vital to both military and civilian healthcare in the U.S. A robust domestic manufacturing base is crucial for national defense and public health during emergencies. Additionally, foreign government interventions have weakened the competitiveness of the U.S. pharmaceutical industry, increasing reliance on fragile foreign supply chains.
4. Based on these findings, the Secretary recommended measures to adjust imports of patented pharmaceuticals and their ingredients, such as negotiating onshoring agreements related to Most-Favored-Nation (MFN) pharmaceutical pricing, imposing tariffs to mitigate threats, and giving preferential treatment to companies committing to domestic production.
5. After reviewing the Secretary’s report and relevant factors, I agree with the assessment that the importation of pharmaceuticals and their ingredients threatens national security. I have determined that a plan of action is necessary to prevent these imports from jeopardizing national security.
6. I have instructed the Secretary and the Secretary of Health and Human Services to pursue or continue negotiations on agreements to address national security threats related to imported patented pharmaceuticals and their ingredients. They are to update me on these negotiations within 90 days of this proclamation.
7. I have decided to impose a 100 percent ad valorem duty on imports of patented pharmaceuticals and associated ingredients, as specified in Annex I, with exceptions noted in this proclamation. Products subject to a zero tariff under section 232 are listed in Annex IV.
8. I have determined that a 20 percent duty rate is appropriate for imports of patented pharmaceuticals and ingredients from companies with approved onshoring plans. This rate will increase to 100 percent four years from this proclamation’s date.
9. It is necessary to implement commitments in trade deals with the European Union, Japan, the Republic of Korea, and Switzerland and Liechtenstein, along with a future deal with the United Kingdom, as of December 1, 2025, to enhance U.S. economic and national security interests.
10. Tariffs will not apply to imports from companies with agreements on MFN pricing and onshoring of production and R&D, as such agreements support U.S. economic and national security by enhancing pharmaceutical accessibility and affordability and reinforcing domestic manufacturing.
11. I have decided not to adjust imports of generic pharmaceuticals and their ingredients, including biosimilar products, at this time. These products, including those for the Strategic API Reserve, will not be subject to section 232 tariffs.
12. I believe the actions outlined in this proclamation are necessary to address the national security threat posed by pharmaceutical imports.
13. Section 232 gives the President authority to adjust imports of articles threatening national security and to implement plans addressing such threats, including through tariffs and negotiations. If negotiations fail or are ineffective within 180 days, other actions may be taken.
14. Section 604 of the Trade Act of 1974 authorizes the President to embody statutes affecting import treatment in the Harmonized Tariff Schedule of the United States (HTSUS), including duty adjustments.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of America, by the authority vested in me by the Constitution and U.S. laws, including sections 232 and 604, do hereby proclaim:
(1) The Secretary and the Secretary of Health and Human Services shall negotiate agreements addressing national security threats related to imported pharmaceuticals and ingredients.
(2) I ratify and delegate to the Secretary the authority to enter into tariff agreements listed in Annex II and similar future agreements. The Secretary will monitor and enforce these agreements as deemed appropriate.
(3)(a) A 100 percent ad valorem duty will apply to imports listed in Annex I.
(b) A 20 percent duty applies to imports from companies with approved onshoring plans, increasing to 100 percent on April 2, 2030.
(c) A 15 percent duty applies to imports from Japan, the EU, the Republic of Korea, and Switzerland and Liechtenstein unless a lower rate applies. UK products will have a 10 percent duty, reducing to zero under a future agreement.
(d) A zero tariff applies to specific drugs and ingredients meeting criteria under the Orphan Drug Act or related to urgent U.S. health needs, as determined by the Secretary in consultation with relevant officials.
(e) Companies with MFN pricing agreements will have a zero tariff until January 20, 2029.
(f) The Secretary may increase tariffs for companies or foreign jurisdictions failing to meet commitments, with notice in the Federal Register.
(4) The tariffs will be effective for goods entered for consumption starting July 31, 2026, for companies in Annex III, and September 29, 2026, for others, unless altered.
(5) Generic pharmaceuticals and their ingredients will not face tariffs under section 232 at this time.
(6) The Secretary will set criteria for onshoring plans, which will be subject to approval, monitoring, and enforcement. Companies must report progress, and the Secretary may require audits. Fraud or misleading information may lead to reimposed tariffs and penalties.
(7) If a product is subject to tariffs under this proclamation and Column 1 of the HTSUS, the higher rate will apply, except for UK products.
(8) The lowest applicable rate will apply if a product is subject to multiple duty rates.
(9) The Secretary, in consultation with relevant officials, will determine necessary changes to the HTSUS or administrative measures, with changes published in the Federal Register.
(10) Drawback is available for duties imposed under this proclamation.
(11) U.S.-origin pharmaceutical imports are not subject to tariffs at this time.
(12) CBP may take necessary measures to administer tariffs, and importers must provide required information.
(13) Products admitted into U.S. foreign trade zones after this proclamation’s effective date must be given “privileged foreign status” and subject to applicable duties.
(14) The Secretary will monitor pharmaceutical imports and review their national security status, informing me of any need for further action.
(15) The Secretary, the Secretary of Health and Human Services, and the Secretary of Homeland Security are authorized to implement this proclamation and related actions, including issuing regulations and procedures.
(16) Relevant officials may redelegate functions within their departments.
(17) Any inconsistent provisions of previous proclamations and Executive Orders are superseded. If any provision of this proclamation is invalid, the remainder remains unaffected.
IN WITNESS WHEREOF, I have hereunto set my hand this second day of April, in the year of our Lord two thousand twenty-six, and of the Independence of the United States of America the two hundred and fiftieth.
DONALD J. TRUMP
ANNEXES I, II, III & IV
