President Donald J. Trump Bolsters National Security and Strengthens U.S. Supply Chains by Imposing Tariffs on Patented Pharmaceutical Products – The White House

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

• A 100% tariff has been placed on patented pharmaceutical products and their ingredients by President Trump.
• The tariffs will be enforced in 120 days for larger companies and 180 days for smaller ones.
• Trade Deal Countries:
  • A 15% tariff will be applied to pharmaceutical products originating from the European Union, Japan, Korea, or Switzerland and Liechtenstein. A reduced tariff will apply to products from the United Kingdom, contingent on the recent UK pharmaceutical agreement.Onshoring and pricing agreements:
    • Companies entering into Most Favored Nation (MFN) pricing agreements with the Department of Health and Human Services (HHS) and onshoring agreements with the Department of Commerce will benefit from a 0% tariff until January 20, 2029. Companies only entering onshoring agreements with the Department of Commerce will face a 20% tariff. The Department of Commerce and HHS will offer pathways for companies to engage in onshoring and MFN pricing deals with the U.S. Government.

  • Generic pharmaceuticals: Currently, generic pharmaceutical products, biosimilars, and related ingredients are exempt from tariffs. This status will be reviewed in a year.

• Specialty pharmaceutical products: Orphan drugs, animal health drugs, and certain other specialty pharmaceuticals will be exempt if they originate from trade deal countries or address urgent public health needs.
• The Proclamation includes stringent monitoring and enforcement measures, such as external audits and potential tariff increases on both future and past imports.

STRENGTHENING AMERICAN SUPPLY CHAINS: President Trump emphasizes the necessity for America to produce pharmaceutical products to ensure safety, security, and health.

• The tariffs were imposed following a thorough investigation by the Secretary of Commerce under Section 232 of the Trade Expansion Act of 1962, as revised, to assess the impact of pharmaceutical imports on national security.
• The investigation concluded that the importation of patented pharmaceuticals and related ingredients in large quantities threatens to jeopardize U.S. national security.
• The impending Section 232 tariffs have already prompted about $400 billion in new investment commitments from both U.S. and foreign pharmaceutical companies, set to be invested within the United States during President Trump’s current term.
• A self-reliant domestic manufacturing and industrial base for pharmaceutical products is crucial for supporting national defense and public health needs.
• Despite being a leader in pharmaceutical research and development, the U.S. reliance on imports poses a risk to access to life-saving medications in case of global supply chain disruptions.

BUILDING ON PROMISES KEPT TO PUT AMERICA FIRST: This measure reinforces President Trump’s dedication to prioritizing America, safeguarding national security, and strengthening American manufacturing across all sectors.

• In May 2025, President Trump signed an Executive Order to eliminate regulatory barriers and facilitate the revival of a strong domestic manufacturing base for prescription drugs, including essential ingredients and materials.
• In August 2025, President Trump signed an Executive Order to bolster American pharmaceutical supply chain resilience by filling the strategic reserve of active pharmaceutical ingredients.
• The Administration has initiated Section 232 investigations in related sectors like personal protective equipment, medical consumables, medical equipment, and devices, as well as robotics. These investigations aim to ensure that harmful imports in any strategic sector do not compromise national security.