Latest on Pharmaceutical Tariffs

On Tuesday, July 22, Donald Trump said he plans to impose new tariffs on imported generic medicines. The proposed tariffs would not take effect for two years. After that, they would increase to 100% for one year and then to 200% the following year. The goal is to give manufacturers time to invest in U.S. production. 

In addition, there are previously announced Section 232 pharmaceutical tariffs that are scheduled to begin soon. 

Patented Pharmaceuticals 

On April 2, 2026, President Trump issued a proclamation imposing Section 232 duties on imports of patented pharmaceuticals, biologics, and associated ingredients into the United States. 

The annexes to the proclamation are available here: https://www.whitehouse.gov/wp-content/uploads/2026/04/Pharmaceuticals-Imports-ANNEXES-I-II-III-IV.pdf 

Products and Companies Subject to Section 232 Pharmaceutical Tariffs 

• Annex I: Identifies covered pharmaceutical products, active pharmaceutical ingredients (APIs), and key starting materials by Harmonized Tariff Schedule of the United States (HTSUS) classification. 

• Annex II: Lists companies that have specific agreements with the Secretary of Commerce. Products imported by these companies will remain exempt through January 2029. 

• Annex III: Beginning July 31, 2026, an additional 100% tariff applies to products imported by the companies listed in this annex. 

• Annex IV: Lists products excluded from Section 232 tariffs. 

Timeline 

Companies listed in Annex III will be subject to duties beginning July 31, 2026. The 100% tariff will then expand to products imported by all other companies effective September 29, 2026. 

Reduced Section 232 Rates 

Certain countries and qualifying manufacturers may receive reduced Section 232 duty rates: 

• 15% rate: Covered patented pharmaceuticals and APIs originating in the European Union, Japan, South Korea, Switzerland, and Liechtenstein. 

• 10% rate: Covered patented pharmaceuticals and APIs originating in the United Kingdom. 

• 20% rate through April 30, 2030: Products manufactured by companies with approved U.S. onshore production plans authorized by the Secretary of Health and Human Services. 

If you have questions about these tariffs or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com. 

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About Allyn International

Allyn International provides high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit  www.allynintl.com.