Section 232 tariffs on certain patented pharmaceutical products and active pharmaceutical ingredients (APIs) are now in effect. US Customs and Border Protection (CBP) issued implementation guidance on July 30, 2026, and new Chapter 99 reporting requirements became effective July 31, 2026.
The tariffs stem from the President’s April 2, 2026, proclamation following a Section 232 national security investigation into US reliance on imported patented pharmaceuticals. The measures apply to certain patented pharmaceutical products and ingredients classified under affected HTSUS Chapter 29 and 30 provisions. Generic pharmaceuticals, biosimilars, and their ingredients are excluded.
When do the Section 232 pharmaceutical tariffs take effect?
Implementation is phased by importer:
- July 31, 2026: Companies listed in Annex III
- September 29, 2026: All other importers
Although most importers will not owe duties until September 29, all importers of affected products have been required to report the appropriate Chapter 99 tariff provision since July 31.
What are the duty rates?
The standard Section 232 tariff is 100%. Reduced rates apply to qualifying imports from the European Union, Japan, South Korea, Switzerland, and Liechtenstein (15%). Imports from the United Kingdom are currently subject to a 0% rate under the US-UK pharmaceutical agreement.
US-origin pharmaceutical products are excluded, as are qualifying US-origin APIs packaged into finished dosage forms abroad with supporting documentation.
What should importers know?
Even if additional duties do not apply until September 29, the Chapter 99 reporting requirement is already in effect. Importers should confirm whether their products fall within the affected HTSUS provisions and ensure the correct Chapter 99 classification is reported on entries.
Mohawk Global can help you determine whether your products are subject to the Section 232 pharmaceutical tariffs, verify reporting requirements, and identify opportunities to manage compliance and duty exposure.