On April 2, 2026, the White House issued the proclamation, “Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients into the United States,” formally extending Section 232 measures to certain patented pharmaceutical products and ingredients following a national security investigation.
As part of this action, a 100% tariff will apply to covered patented pharmaceutical products and ingredients, with implementation set for 120 days for large companies and 180 days for smaller companies. The subject articles, including the definition of pharmaceutical products and ingredients are provided for in annexes-I-II-III-IV of the proclamation
At the same time, the policy introduces reduced tariff rates for key U.S. trading partners, including a 15% cap on imports from the European Union, Japan, South Korea, and Switzerland. Imports from the United Kingdom will receive preferential treatment under a separate pharmaceutical agreement.
In addition, the administration has introduced incentives aimed at encouraging domestic production and pricing alignment. Companies that enter into pricing agreements with the U.S. Department of Health and Human Services while also committing to onshore production through the U.S. Department of Commerce may qualify for a 0% tariff rate through January 20, 2029. Companies that pursue onshoring alone will be subject to a 20% tariff, while those that do neither will face the full 100% rate.
Drawback shall be available with respect to the duties imposed pursuant to this proclamation. Goods imported into a United States foreign trade zone on or after the effective date, must be admitted as “privileged foreign status”. Lastly, the proclamation advises U.S. origin pharmaceutical products are not subject to these tariffs at this time.
For questions about how this proclamation may impact your business, contact your Mohawk Global representative to discuss potential implications and next steps.