- President Trump has issued a proclamation imposing duties, potentially up to 100%, on certain patented pharmaceutical goods and ingredients under Section 232, following a Commerce Department investigation citing national security concerns over import reliance.
- The tariffs, taking effect in phases starting July 31, 2026, include exemptions for generics, imports from “Most Favored Nation” deal companies, countries with drug pricing agreements, and offer a reduced 20% duty for companies committing to onshore production.
- These new tariffs will not stack on existing HTSUS Column 1 rates, with importers generally paying the higher of the two, and also clarify that duty drawback remains available for US-origin pharmaceutical goods.
Source EY
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