Trump Signs Section 232 Proclamation Imposing 100% Tariff on Patented Pharmaceutical Imports — With Carve-Outs Down to Zero for Companies Accepting MFN Pricing
A proclamation signed April 2 and published in the Federal Register April 9 creates a six-tier tariff structure on patented drug imports: 100% default, 20% for companies with approved onshoring plans, 15% for EU/Japan/Korea/Swiss-Liechtenstein goods, 10% for UK goods, and zero for companies that sign both onshoring plans AND Most-Favored-Nation pricing agreements with HHS. Generics are exempt. Tariffs take effect July 31 for some companies and September 29 for the rest.
President Trump signed a proclamation on April 2, 2026 imposing tariffs on patented pharmaceuticals and active pharmaceutical ingredients under Section 232 of the Trade Expansion Act of 1962, on national security grounds. The proclamation was published in the Federal Register on April 9 as document 2026-06956 and is the first Section 232 action ever taken against pharmaceutical imports.
The core findings
The proclamation cites a Commerce Department investigation that concluded patented pharmaceutical imports "threaten to impair the national security" of the United States. The supporting facts, as stated in the proclamation:
- Approximately 53 percent of patented pharmaceutical products distributed domestically are produced outside the country, per FDA 2025 data cited in the proclamation.
- Only 15 percent of patented APIs by volume are domestically produced for the US market.
- The proclamation argues that "foreign government intervention" has "undermined the competitiveness" of the US patented pharmaceutical industry.
The six-tier tariff structure
Under clause (3) of the proclamation, imports of patented pharmaceuticals and associated active pharmaceutical ingredients — as identified in Annex I — face a graduated duty structure:
| Rate | Applies to |
|---|---|
| 100% | Default rate for patented pharmaceuticals and APIs (Annex I products) |