Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients Into the United States
1. Purpose
The proclamation aims to adjust the import of pharmaceuticals and pharmaceutical ingredients into the U.S. to safeguard national security, following a Commerce investigation revealing potential risks due to foreign dependency.
2. Key Actions And Directives
- Implement Tariffs on Patented Pharmaceuticals: Impose a 100% ad valorem duty on imports of patented pharmaceuticals and associated ingredients; companies with approved onshoring plans face a 20% duty rate.
- Monitor Onshoring Plans: Establish criteria for onshoring plans and require periodic progress reports from companies.
- Coordinate Implementation: Direct collaborative actions between the Secretary of Commerce, Secretary of Health and Human Services, and Secretary of Homeland Security to enforce this proclamation.
3. Important Points
- National Security Concerns: The investigation found that the high percentage of pharmaceuticals produced overseas poses a risk to U.S. economic and national security.
- Dependency on Foreign Manufacturing: As of 2025, over half (53%) of patented pharmaceuticals distributed in the U.S. are made internationally, highlighting a critical vulnerability.
- Support for Onshoring Initiatives: The proclamation encourages local manufacturing through a lower duty structure for companies developing onshoring plans, promoting domestic production.
- Exemption for Generic Pharmaceuticals: Generic pharmaceuticals are currently exempt from tariff measures, allowing continued access without additional costs.
- Monitoring Compliance: Provisions are in place for ongoing evaluation and enforcement of onshoring commitments, ensuring adherence to national security measures.
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