GlossaryEN1 min readUpdated: Jun 25, 2026

Pharmaceutical Tariffs (Section 232)

As of June 2026.

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Last updated: 25 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 June 2026. By proclamation of 2 April 2026, U.S. President Trump imposed a 100% tariff under Section 232 of the Trade Expansion Act of 1962 on imported patented pharmaceuticals and active pharmaceutical ingredients (APIs), citing national security and dependence on foreign supply chains. The duties take effect on 31 July 2026 (for companies listed in Annex III) and 29 September 2026 (for all others). Instead of the 100% base rate, tiered country and program rates apply: products from the EU, Switzerland, Liechtenstein, Japan and South Korea face 15%, those from 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 Commerce-approved onshoring plans pay 20%, those with MFN pricing agreements 0%. Generics, biosimilars and orphan drugs are exempt. The 15% rate is especially consequential for Switzerland's export-heavy pharma industry (e.g. Roche, Novartis). Not to be confused with the reciprocal tariffs (IEEPA-based) or the Section 232 tariffs on steel, aluminium and copper; pharmaceutical tariffs rest on their own legal basis. See also stacking of tariffs and HTS classification.

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Pharmaceutical Tariffs (Section 232)

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Tariff Stacking

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