US President Donald Trump has announced tariffs of up to 100 per cent on imported patented pharmaceuticals, citing national security risks and the urgent need to reduce reliance on foreign supply chains.
In a proclamation issued Thursday, he warned, "Imported drugs and active pharmaceutical ingredients (APIs) are being brought into the United States in such quantities and circumstances as to threaten to impair national security."
The measure targets patented medicines critical for civilian healthcare and military readiness.
Under the order, most imported patented drugs will face a 100 per cent ad valorem duty.
Companies that move production to the United States will receive a reduced 20 per cent tariff for four years, after which the full 100 per cent rate will apply.
The administration applies lower tariffs, around 15 per cent, for imports from the European Union, Japan, South Korea and Switzerland.
Officials exempt specialised categories such as orphan drugs, nuclear medicines and gene therapies from duties.
Generic drugs and biosimilars remain outside the tariff regime.
Officials stated that the policy aims to rebuild domestic pharmaceutical manufacturing and secure supply chains against geopolitical and economic disruptions.
US Trade Representative Jamieson Greer emphasised that the government focuses not only on tariffs but also on long-term production restructuring within the United States. He noted that companies have already started building new pharmaceutical facilities domestically.
The tariffs will roll out from 31 July 2026, with some firms receiving delayed timelines.
Analysts warn the move may disrupt global pharmaceutical trade, especially impacting India and China.
Using Section 232, previously applied to steel and aluminium, the administration extends national security rules to pharmaceuticals.