GlossaryEN1 min readUpdated: Jul 7, 2026

Pharmaceutical Tariffs (Section 232)

As of July 2026.

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Last updated: 7 July 2026Published: 24 June 2026

Source: White House Proclamation „Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients into the United States" (2.4.2026), https://www.whitehouse.gov/presidential-actions/2026/04/adjusting-imports-of-pharmaceuticals-and-pharmaceutical-ingredients-into-the-united-states/ ; Crowell & Moring, https://www.crowell.com/en/insights/client-alerts/trump-administration-imposes-section-232-tariffs-on-patented-pharmaceutical-imports-tiered-rate-structure-takes-effect-beginning-july-31-2026 . Stand: Juni 2026.

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Definition & Explanation

As of July 2026. Under a proclamation issued on 2 April 2026, the United States imposed Section 232 tariffs on patented pharmaceuticals and their active pharmaceutical ingredients (APIs) for the first time; the standard rate is 100% and applies from 31 July 2026 for companies listed in Annex III and from 29 September 2026 for all others. Unlike the reciprocal tariffs, the legal basis is Section 232 of the Trade Expansion Act of 1962 (national security), so these duties are unaffected by the Supreme Court's February 2026 IEEPA ruling. Rates are tiered: pharmaceutical products from the EU, Switzerland, Liechtenstein, Japan and South Korea face a reduced 15% rate, the United Kingdom 10% (the UK rate stacks on top of the MFN base duty, whereas the EU and Swiss rates replace the MFN duty). Companies with a Department of Commerce-approved onshoring agreement pay 20% (rising to 100% after four years), and firms with an MFN pricing agreement 0%. Generic drugs, biosimilars and their ingredients are expressly excluded. For Switzerland's export-heavy pharmaceutical industry (Basel region) the 15% rate is highly significant. Not to be confused with the Section 232 steel, aluminium, copper or automobile tariffs, or with antidumping duties. Related terms: Section 232, surtax, reciprocal tariffs, HTS.

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Pharmaceutical Tariffs (Section 232)

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Related Terms

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Foreign-Trade Zone (FTZ)

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