President Trump Signs Executive Order Imposing 100% Tariffs on Patented Pharmaceuticals
On April 2, 2026, President Trump signed an executive order that enacts a 100% ad valorem tariff on patented pharmaceutical products and their active pharmaceutical ingredients (APIs). This order, issued under Section 232 of the Trade Expansion Act of 1962, will take effect on July 31, 2026, for large companies and September 29, 2026, for smaller manufacturers. The tariffs apply to all countries not listed in the proclamation's preferential tiers, which include the EU, Japan, South Korea, Switzerland/Liechtenstein, and the U.K. Generic pharmaceuticals, biosimilars, and certain specialty products are currently exempt, with a review of generics mandated within a year.