Section 232 tariff on patented medicines starts for listed companies
From Jul 31, 2026, patented pharmaceuticals and their ingredients from the companies listed in Annex III of Proclamation 11020 pay a total of 100% with the regular duty, 15% for the EU, Japan, South Korea, Switzerland and Liechtenstein, and nothing extra for the UK.
Proclamation 11020, signed Apr 2, 2026, put a Section 232 tariff on patented pharmaceuticals and their ingredients listed in U.S. note 40(c). It applies to goods entered from Jul 31, 2026 for the companies listed in Annex III of the proclamation, and from Sep 29, 2026 for all other companies.
The Section 232 duty and the regular duty together come to:
- 100% for most countries (heading 9903.04.60)
- 15% for the EU, Japan, South Korea, Switzerland and Liechtenstein (heading 9903.04.62)
Where the regular duty is already higher, only the regular duty applies. For products of the United Kingdom the proclamation set 10%, and Commerce cut it to zero from Jul 31, 2026 under the U.S.-UK pharmaceutical pricing arrangement (91 FR 49406, Aug 4, 2026; heading 9903.04.63).
Generic drugs and U.S.-origin products don't pay it. Companies that have onshoring plans approved by the Secretary of Commerce, or that the Secretary assesses are likely soon to have them, pay 20%, rising to 100% on Apr 2, 2030; those that also have a most-favored-nation pricing agreement with the Secretary of Health and Human Services pay zero "until January 20, 2029". Details are on the program page.