US Section 232 tariff on pharmaceuticals and ingredients

• A Section 232 proclamation dated April 2, 2026 sets a 100% tariff on covered branded/patented finished pharmaceutical products, effective May 1, 2026.
• Treatment is case-based: importers operating under an approved US onshoring plan are exempt (0%) while the plan is honoured — an exemption the proclamation allows to be tightened over time — and partner-country arrangements can cap covered products at a lower rate (for example 15%).
• Generics and most active pharmaceutical ingredients fall outside scope except where the proclamation’s annexes specifically list them; this is not a blanket exemption and can change.

The 100% tariff on covered branded/patented finished products applies at import entry from May 1, 2026. The approved-onshoring exemption and any partner-country cap apply from the dates stated for each case in the proclamation and its annexes — read the operative text for your specific HTS line.

Announced

Apr 2, 2026

Effective

May 1, 2026

• Covered finished drug products, active pharmaceutical ingredients and key starting materials as defined in the proclamation and its annexes.
• Whether your case is patented, under an approved onshoring plan, a generic, or subject to a country arrangement determines treatment.
• Regulated medicines are also subject to FDA and other controls that are separate from tariffs.

• Generics are treated as exempt at this time only where the proclamation says so — verify against the annex, do not assume.
• An approved onshoring plan and specific country arrangements can change treatment and timing.
• Scope can differ between finished products and ingredients, and phase-in dates vary by case.

The proclamation sets different treatment for different cases — notably branded/patented pharmaceuticals, importers operating under an approved onshoring plan, and specific country arrangements. Generics are treated as exempt at this time only where the proclamation and its annexes say so. Scope, rate and phase-in dates are defined by the official text and its annexes, not assumed.

• Whether the product is a finished pharmaceutical, an API, or a starting material.
• Whether it is patented/branded or generic, and whether an approved onshoring plan or country arrangement applies.
• Country of origin and a description precise enough to identify the likely HTS heading.

• A covered branded/patented finished product carries the 100% Section 232 tariff on top of base duty — a very large landed-cost impact where it applies.
• A different case changes the outcome sharply: an approved onshoring plan can mean 0%, a partner-country arrangement can cap the rate (e.g. 15%), and most generics and APIs stay at base duty.
• Model your specific case rather than applying one rate across a portfolio.

Confirm whether your product is covered, which case applies (patented, approved onshoring plan, generic, or a country arrangement), and the implementation date for your HTS line in the proclamation and its annexes.

• The April 2, 2026 Section 232 pharmaceuticals proclamation and its annexes.
• The Federal Register notice and any implementation guidance for your case and date.
• Your exact HTS line and its ordinary rate on the USITC Harmonized Tariff Schedule.