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U.S. Imposes Up to 100% Tariffs on Patented Drug Imports, With Lower Rates for Allies

The White House cites national security to push firms to shift drug production to the U.S.

Overview

  • Washington set tariffs up to 100% on patented medicines from countries without preferred trade status, citing FDA data that most finished drugs and active ingredients now come from abroad.
  • European Union, Japan, South Korea and Liechtenstein face a 15% rate, and the United Kingdom will have a tailored rate under its own trade agreement.
  • Large manufacturers face a 120-day start to comply and smaller firms get 180 days, with a 90-day checkpoint to show progress in talks with companies and allied governments.
  • Drugmakers that commit to move production to U.S. plants can qualify for reduced rates, and certain specialized or emergency-use therapies may receive exemptions.
  • The package also keeps 50% tariffs on steel, aluminum and copper, with a 25% rate for items that contain those metals.