Administration announces additional pharmaceutical tariffs

The White House April 2 issued a proclamation implementing additional tariffs on certain patented pharmaceutical products and ingredients. The order imposes a 100% tariff within 120 days for certain large companies identified in Annex III of the proclamation, and 180 days for smaller companies. Pharmaceuticals from the European Union, Japan, Korea or Switzerland and Liechtenstein will have a 15% tariff applied. Pharmaceuticals from the U.K. will have a lower tariff rate subject to the recently concluded U.K. pharmaceutical agreement. Companies with most-favored-nation pricing agreements with the Department of Health and Human Services and onshoring agreements with the Department of Commerce will not be subject to any tariffs for their products through Jan. 20, 2029, the administration announced. Companies only entering into onshoring agreements will have a 20% tariff applied to their products. While generic pharmaceuticals, biosimilars and associated ingredients are exempt from the tariffs, this will be reassessed within one year, according to the announcement. In addition, certain specialty pharmaceutical products, including orphan drugs, will be exempt from tariffs if they are from any trade deal countries or are deemed to meet an urgent public health need.