Section 232 Pharmaceutical Tariff Structure Took Effect Friday July 31, 2026 for the 17 Companies Named in Annex III of the Trump Administration Executive Order With 100% Duties on Patented Drug and Active Pharmaceutical Ingredient (API) Imports Absent an Onshoring Agreement (Which Reduces the Tariff to 20%); Broader Pharmaceutical Industry Faces September 29, 2026 Deadline for Additional Tariff Applicability; Generic Pharmaceuticals, Biosimilars, and Their Ingredients Are Expressly Excluded; Industry Response Ahead of the Deadline Includes Over $500 Billion in Announced US Pharmaceutical Manufacturing Investment Commitments Per Trump Administration Reporting With Independent Analyst Tallies of $370-480 Billion for the 2025-2030 Period
The Section 232 pharmaceutical tariff structure took effect Friday July 31, 2026 for the 17 companies named in Annex III of the Trump administration Executive Order. Tariff structure: 100% duties on patented drug and active pharmaceutical ingredient (API) imports absent an onshoring agreement; companies that negotiated an onshoring agreement before the July 31 deadline receive a reduced 20% tariff. The broader pharmaceutical industry faces a September 29, 2026 deadline for additional tariff applicability at the higher rates. Generic pharmaceuticals, biosimilars, and their associated ingredients are expressly excluded from Section 232 at this time (President Trump separately announced Tuesday July 21 that imported generics would face zero tariffs for two years starting August 2028). Industry response ahead of the July 31 deadline: over $500 billion in announced US pharmaceutical manufacturing investment commitments per Trump administration reporting. Independent analyst tallies documented $370-480 billion in announced US pharma manufacturing investment for the 2025-2030 period. Companies affected include Novo Nordisk, Eli Lilly, Merck, AstraZeneca, Sanofi, AbbVie, Roche, Bristol-Myers Squibb, Amgen, Pfizer, and Biogen. Drawback relief provisions apply for API and finished-drug exports made from imported components. The tariff structure was formally imposed via the Executive Order 120 days before the July 31 effective date.