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UNITED STATES President Donald Trump has signed an executive order imposing steep tariffs on imports of specific patented pharmaceuticals and related ingredients, asserting that such imports pose a threat to American national security.
In the order, issued on Thursday, Trump argued that the volume and conditions under which these pharmaceutical products are entering the United States “are in such quantities and under such circumstances as to threaten to impair the national security of the United States.”
He directed that a 100 per cent ad valorem tariff will be applied to these imports.
The new duties are scheduled to take effect from 12:01 a.m. Eastern Daylight Time on 31 July 2026.
In an effort to encourage domestic production, the order provides for lower tariffs of 20 per cent on goods from companies that have secured, or are likely soon to secure, onshoring plans approved by the US Commerce Secretary.
These reduced rates will rise to 100 per cent on 2 April 2030 if onshoring targets are not met.
The executive order also outlines differentiated tariff rates for foreign partners with existing trade agreements. Japan, the European Union, the Republic of Korea, Switzerland and Liechtenstein will face a 15 per cent tariff, while the United Kingdom will be subject to a 10 per cent rate.
Notably, generic medicines, biosimilars and associated ingredients are exempted from the tariffs at this time, as are several specialised categories such as nuclear medicines, plasma‑derived therapies, fertility treatments and advanced cell and gene therapies.
Analysts say the policy represents a dramatic shift in how the United States approaches pharmaceutical supply chains, signalling a preference for domestic manufacturing and perceived supply chain security over reliance on foreign production.
The full impact of the tariffs will depend on how trading partners respond and whether exemptions or negotiations emerge in the coming months. - April 3, 2026