Overview
- President Trump’s proclamation, issued Thursday, April 2, 2026, uses Section 232 authority to set a default 100% tariff on imported patented medicines and key ingredients, with lower rates for companies that onshore or agree to Most‑Favored‑Nation pricing.
- Tariffs start July 31, 2026 for 17 companies named in Annex III and September 29, 2026 for others, with separate annexes listing covered products, firms with pre‑existing deals, and items that keep a zero rate.
- Companies with approved U.S. onshoring plans face a 20% rate that rises to 100% on April 2, 2030, and firms that also sign MFN pricing agreements with HHS get a 0% rate through January 20, 2029.
- Country rates lower the duty to 15% for products from the EU, Japan, South Korea, Switzerland, and Liechtenstein and to 10% for the UK, while generics, biosimilars, U.S.‑origin goods, and specified specialties like orphan drugs are currently exempt.
- Commerce and HHS must publish onshoring criteria, monitor progress, and can audit and impose retroactive duties for noncompliance, as industry groups warn of higher costs and slower R&D and the White House cites about $400 billion in pledged U.S. investment.