Trump signs proclamation imposing 100% Section 232 tariff on patented pharmaceutical imports

Exactly one year after "Liberation Day," President Trump signs a proclamation invoking Section 232 of the Trade Expansion Act of 1962 to impose tariffs on imported patented pharmaceuticals and active pharmaceutical ingredients. The default rate is 100% for companies that have not entered Most Favored Nation pricing agreements with HHS. Companies that have approved onshoring plans receive a reduced 20% rate that rises to 100% in four years. Tariffs take effect July 31, 2026 for large companies and September 29, 2026 for others. EU, Japan, South Korea, Switzerland, and Liechtenstein face 15%. The UK faces 10%. Generic drugs are exempt. The proclamation notes 13 companies already entered onshoring agreements, spurring an estimated $400 billion in announced domestic pharmaceutical investment.