US imposes 100 per cent tariff on patented drugs

WASHINGTON: The United States will impose tariffs of up to 100 per cent on imported patented pharmaceuticals, with President Donald Trump citing national security risks and heavy reliance on foreign supply chains.

In a proclamation issued Thursday, Trump said pharmaceuticals and related ingredients “are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.”

The proclamation targets patented drugs and active pharmaceutical ingredients (APIs). These are critical for both civilian healthcare and military readiness. The administration warned that reliance on overseas production could disrupt access to “life-saving medications” during geopolitical or economic crises.

Under the order, most imported patented pharmaceuticals will face a 100 per cent ad valorem duty. Companies that commit to shifting production to the United States will be subject to a reduced 20 per cent tariff, which will rise to 100 per cent after four years.