President Trump announced on September 25 that the United States will implement a 100% tariff on branded or patented pharmaceutical products starting October 1. This tariff will apply unless the company manufacturing these pharmaceuticals is building its plant in the U.S. The President clarified via Truth Social that "is building" means the facility must be either "breaking ground" or "under construction." No tariffs will be imposed if construction has already commenced.
As of September 26, no official documents regarding this announcement have been released by the administration. In May, the American Hospital Association (AHA) submitted comments to the Department of Commerce concerning its Section 232 national security investigation into pharmaceutical imports. The AHA emphasized the importance of maintaining tariff exceptions for products facing shortages and for countries that supply a significant portion of pharmaceuticals and ingredients to the U.S.
"The lives of patients often depend on the ready availability of drugs to respond to emergent conditions like heart attacks and infections, and other critical illnesses like cancer and organ failure," said an AHA letter. It highlighted that disruptions in access to medications could pose significant risks due to the complex nature of pharmaceutical supply chains, which rely on both domestic and international sources.
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