The U.S. Administration issued a presidential proclamation on April 2, 2026 titled “Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients into the United States,” introducing significant new tariff measures on imported patented pharmaceuticals under Section 232 national security authorities.
The proclamation determines that current levels of reliance on foreign pharmaceutical manufacturing, including both finished drugs and active pharmaceutical ingredients, pose a risk to U.S. national security and supply chain resilience. The Administration noted that a substantial share of patented medicines consumed domestically are produced overseas, increasing vulnerability during geopolitical or economic disruptions.
To address these concerns, the U.S. will impose a baseline 100 percent ad valorem tariff on imported patented pharmaceuticals and related ingredients. A differentiated framework applies, however, to incentivize industry behavior. Companies that commit to U.S. onshoring of production may be subject to an initial 20 percent tariff, which escalates to 100 percent after four years. Companies that enter into most favored nation pricing and onshoring agreements with the U.S. government may qualify for a zero tariff rate for a defined period.
The measure also incorporates country specific tariff arrangements aligned with existing or anticipated trade agreements, including reduced tariff rates for certain U.S. partners. In addition, targeted exemptions apply to specific categories such as orphan drugs, plasma therapies, and other critical or specialty products. Generic pharmaceuticals and biosimilars are explicitly excluded from the scope of the tariffs at this stage.
Overall, the policy reflects a combined trade, industrial, and healthcare pricing strategy aimed at strengthening domestic manufacturing capacity while exerting downward pressure on drug prices.
Official source – executive order from the White House: