News
Trump imposes 100% tariff on imported drugs
Trump imposes 100% tariffs on imported drugs, but CSL benefits from key exemptions in U.S. pharmaceutical imports
Trump imposes 100% tariffs on imported drugs, but CSL benefits from key exemptions in U.S. pharmaceutical imports
– Trump signed an executive order for a 100% tariff on imported patented pharmaceuticals to boost U.S. production.
– Major companies like Pfizer are exempt due to agreements, while others may face reduced tariffs based on onshoring commitments.
The tariffs are imposed under Section 232 of the Trade Expansion Act of 1962 for national security reasons.
Certain major pharmaceutical companies, including Pfizer and Merck, will not face tariffs due to confidential agreements with the White House.
Companies that commit to approved onshoring plans will incur a reduced 20% tariff.
Those without any agreements will be subject to the full 100% tariff.
Countries with trade agreements with the U.S. will benefit from lower rates, with tariffs from the EU at 15% and from the UK at 10%.
Generic drugs and biosimilars are exempt from tariffs for at least one year.
Australia’s industry
Australia’s pharmaceutical exports may face the 100% or 20% tariffs depending on company negotiations.
CSL, Australia’s largest drug exporter, is exempt from the tariffs on plasma-derived therapies.
CSL operates over 300 plasma collection centres in the U.S. and plans a $1.5 billion expansion in Illinois.
Tariffs will not take immediate effect, allowing large companies 120 days and smaller firms 180 days before implementation.
The announcement coincides with the administration’s focus on lowering drug prices before the 2026 midterm elections.
The tariffs result from a Section 232 investigation that began in April 2025 regarding dependence on imported patented drugs.
Tariffs and trade
The order aims to reshape the pharmaceutical landscape in the U.S.
It reflects ongoing tensions with global trading partners over drug pricing strategies.
The impact on health care in the U.S. may become a contentious topic in upcoming political discussions.
Industry stakeholders are closely monitoring the developments and potential repercussions for pharmaceutical access.
