U.S. tariffs · Section 232
Section 232 tariffs on patented pharmaceuticals and ingredients
In effect (status checked Oct 16, 2026, the last day we checked the Federal Register for later documents). The documents schedule a rate change on Apr 2, 2030.
Commerce (BIS) notice of Sep 23, 2026 (91 FR 60360): “imposed a 100 percent ad valorem tariff on certain imports of patented pharmaceuticals and associated pharmaceutical ingredients, effective July 31, 2026 for the companies listed in Annex III of Proclamation 11020, and September 29, 2026 for all other companies”
Proclamation 11020, signed April 2, 2026 under section 232, puts a 100% ad valorem duty on patented pharmaceuticals and associated ingredients listed in its Annex I. The duty applies from July 31, 2026 for companies listed in Annex III and from September 29, 2026 for other companies. Products of the European Union, Japan, South Korea, and Switzerland and Liechtenstein have a 15% rate, and a Commerce notice lowered the United Kingdom rate to zero. Companies with onshoring plans approved by Commerce pay 20%, rising to 100% on April 2, 2030; those that also have MFN pricing agreements with HHS pay zero until January 20, 2029. Certain specialty drugs, such as orphan-only drugs and cell and gene therapies, have a zero rate when they come from listed jurisdictions or Commerce approves them as meeting an urgent U.S. health need. Generic pharmaceuticals, including biosimilars, are not covered at this time.
| Legal authority | Section 232 of the Trade Expansion Act of 1962 “a report on his investigation into the effects of imports of pharmaceuticals and pharmaceutical ingredients on the national security of the United States under section 232 of the Trade Expansion Act of 1962” Proclamation 11020 |
|---|---|
| Countries | All countries |
| What it covers | Patented pharmaceuticals, their active ingredients and key starting materials listed in Annex I to Proclamation 11020; inactive ingredients and excipients are not covered. Generic pharmaceuticals and their ingredients, including biosimilars, are not covered at this time. “impose a 100 percent ad valorem duty rate on the import of patented pharmaceuticals and associated pharmaceutical ingredients, as identified in Annex I to this proclamation” Proclamation 11020 |
| Took effect | Jul 31, 2026, 12:01 a.m. eastern daylight time (Annex III companies; Sep 29, 2026 for other companies) “on or after 12:01 a.m. eastern daylight time on July 31, 2026, for the companies listed in Annex III to this proclamation and September 29, 2026, for other companies” Proclamation 11020 |
Rates
One row per rate the documents set. Rates in separate rows are not added together here; each document sets how its duty applies alongside others.
| Rate | What | From | In the document's words |
|---|---|---|---|
| 100% Section 232 duty plus Column 1 rate equals this rate (clause 7) | Patented pharmaceuticals and ingredients Annex I patented pharmaceuticals and associated ingredients | Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies | “Imports of patented pharmaceuticals and associated pharmaceutical ingredients, as listed in Annex I to this proclamation, will be subject to a 100 percent ad valorem duty rate.” Proclamation 11020 ↗ |
| 15% Section 232 duty plus Column 1 rate equals this rate (clause 7) | European Union, Japan, South Korea, Switzerland and Liechtenstein Annex I products of these jurisdictions, unless a lower rate in clause 3 of Proclamation 11020 applies | Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies | “shall be 15 percent for products of Japan, the European Union, the Republic of Korea, and Switzerland and Liechtenstein jointly, unless a lower rate applies under clause (3) of this proclamation.” Proclamation 11020 ↗ |
| 0% ad valorem | United Kingdom Annex I products of the United Kingdom; Proclamation 11020 had set 10% | Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies | “Therefore, the tariff rate for patented pharmaceuticals and associated pharmaceutical ingredients that are products of the United Kingdom is now zero.” Commerce (BIS) notice of Aug 4, 2026 ↗ |
| 20% Section 232 duty plus Column 1 rate equals this rate (clause 7) | Companies with onshoring plans approved by Commerce Annex I products of companies with onshoring plans approved by Commerce, including companies that Commerce assesses are “likely soon to have” one (for example, based on agreements in principle) | Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies | “shall be 20 percent for products of companies that have, or that the Secretary assesses are likely soon to have (e.g., based on agreements in principle), onshoring plans approved by the Secretary.” Proclamation 11020 ↗ |
| 100% Section 232 duty plus Column 1 rate equals this rate (clause 7) | Companies with onshoring plans (scheduled increase) The 20% onshoring-plan rate rises to 100% on April 2, 2030 | Apr 2, 2030 | “The aforementioned 20 percent rate shall increase to 100 percent on April 2, 2030.” Proclamation 11020 ↗ |
| 0% until January 20, 2029 ad valorem | Onshoring-plan companies with MFN pricing agreements Companies eligible for the onshoring-plan rate that also have Most-Favored-Nation pricing agreements with the Department of Health and Human Services | Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies | “and that have entered into MFN pharmaceutical pricing agreements with the Secretary of Health and Human Services, the applicable ad valorem tariff rate for pharmaceuticals and associated pharmaceutical ingredients shall be zero until January 20, 2029.” Proclamation 11020 ↗ |
| 0% ad valorem, per the terms of each agreement | Companies with agreements listed in Annex II Company-specific tariff agreements listed in Annex II to Proclamation 11020 | Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies | “For avoidance of doubt, this zero tariff rate shall also apply per the terms of the agreements listed in Annex II to this proclamation.” Proclamation 11020 ↗ |
| 0% ad valorem | Specialty pharmaceuticals from eligible jurisdictions or meeting an urgent U.S. health need Orphan-only drugs, nuclear medicines, plasma-derived therapies, fertility drugs, cell and gene therapies, antibody drug conjugates, CBRN medical countermeasures and animal health products, from jurisdictions listed by Commerce or approved for an urgent health need; jurisdiction list published September 23, 2026; the notice states no separate effective date | Jurisdiction list published Sep 23, 2026; the notice states no effective date for the zero rate | “This notice defines the pharmaceutical products and lists the jurisdictions that are eligible to receive an ad valorem tariff rate of zero pursuant to Presidential Proclamation 11020” Commerce (BIS) notice of Sep 23, 2026 ↗ |
| 0% ad valorem | Clinical trial, research and non-commercial imports Covered pharmaceutical products imported solely for clinical trials, research and development, or other non-commercial uses | Sep 29, 2026 (effective date of the tariff schedule changes in the September 23, 2026 notice) | “a new heading in Chapter 99 of the HTSUS with an ad valorem tariff rate of zero … solely intended for clinical trials, research and development, or other non-commercial applications.” Commerce (BIS) notice of Sep 23, 2026 ↗ |
Exceptions and stacking rules
| Rule | What | From | In the document's words |
|---|---|---|---|
| Not covered exclusion | Generic pharmaceuticals, including biosimilars Generic pharmaceuticals and their associated ingredients, including biosimilar products | Jul 31, 2026 | “I have further determined not to adjust imports of generic pharmaceuticals and their associated ingredients, including biosimilar products, at this time.” Proclamation 11020 ↗ |
| Section 232 duty plus Column 1 rate equals the listed rate stacking rule | Combination with the ordinary duty Products subject to both the section 232 duty and an ordinary Column 1 duty; this rule does not apply to products of the United Kingdom | Jul 31, 2026 | “the sum of the additional section 232 tariff … and the applicable Column 1 Duty Rate shall be equal to the applicable rate … This clause does not apply to the tariff treatment for products of the United Kingdom” Proclamation 11020 ↗ |
| Only the Column 1 rate applies stacking rule | Ordinary duty higher than the listed rate Products whose ordinary Column 1 duty rate is higher than the applicable rate in clause 3 of Proclamation 11020 | Jul 31, 2026 | “unless the Column 1 Duty Rate is greater than the applicable rate listed in clause (3) of this proclamation, in which case only the Column 1 Duty Rate shall apply.” Proclamation 11020 ↗ |
| Lowest applicable rate stacking rule | More than one rate applies Products that qualify for more than one rate under Proclamation 11020 | Jul 31, 2026 | “If a product is subject to more than one rate of duty under this proclamation, then the lowest applicable rate shall apply.” Proclamation 11020 ↗ |
History
- Apr 2, 2026 Proclamation 11020 was signed, setting section 232 duties on patented pharmaceuticals and associated ingredients and leaving generics out for now. “I concur with the Secretary's finding that pharmaceuticals and associated pharmaceutical ingredients are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security” Proclamation 11020 ↗
- May 13, 2026 Commerce's Bureau of Industry and Security published how companies apply for onshoring agreements, with applications requested by June 12, 2026. “This notice announces the procedures for companies that manufacture pharmaceutical products to apply for company-specific agreements with the Department of Commerce (Commerce) to onshore manufacturing of pharmaceutical products and their ingredients.” Commerce (BIS) notice of May 13, 2026 ↗
- Jul 31, 2026 The duties began to apply to companies listed in Annex III to Proclamation 11020. “12:01 a.m. eastern daylight time on July 31, 2026, for the companies listed in Annex III to this proclamation” Proclamation 11020 ↗
- Jul 31, 2026 A Bureau of Industry and Security notice, published August 4, 2026, lowered the United Kingdom rate from 10% to zero for entries from July 31, 2026. “This notice revises the tariff rate on patented pharmaceuticals and associated pharmaceutical ingredients that are products of the United Kingdom from 10 percent to zero percent” Commerce (BIS) notice of Aug 4, 2026 ↗
- Sep 23, 2026 The Bureau of Industry and Security listed the jurisdictions whose specialty pharmaceuticals receive the zero rate and made technical corrections to the tariff schedule. “eligible … Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, European Union, Guatemala, India, Indonesia, Japan, Jordan, Malaysia, North Macedonia, Republic of Korea, Switzerland and Liechtenstein, Taiwan, Thailand, United Kingdom, and Vietnam.” Commerce (BIS) notice of Sep 23, 2026 ↗
- Sep 29, 2026 The duties began to apply to all other companies. “September 29, 2026, for other companies and shall continue in effect, unless such actions are expressly reduced, modified, or terminated.” Proclamation 11020 ↗
- Sep 29, 2026 Corrections to the tariff schedule took effect: inactive ingredients and excipients are not covered articles, and unpatented animal health products count as generic. “12:01 a.m. eastern time on September 29, 2026 … Inactive ingredients and excipients are not pharmaceutical articles. … or an unpatented animal health product.” Commerce (BIS) notice of Sep 23, 2026 ↗
Source documents
- Proclamation Proclamation 11020: Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients Into the United States ↗ Imposes the duty and sets the partner, onshoring, pricing-agreement and specialty rates
- Commerce (BIS) notice Procedures To Apply for Company-Specific Onshoring Agreements To Obtain Tariff Adjustments for Pharmaceuticals and Pharmaceutical Ingredients Under Proclamation 11020 ↗ Sets how companies apply for onshoring agreements and the reduced rate
- Commerce (BIS) notice Notice of Reduction of Tariffs on Patented Pharmaceuticals and Pharmaceutical Ingredients for Products of the United Kingdom Implemented by Presidential Proclamation 11020 ↗ Lowers the United Kingdom rate from 10% to zero
- Commerce (BIS) notice Guidance and Procedures for Implementing Tariff Adjustments for Specialty Pharmaceuticals and Associated Pharmaceutical Ingredients and Technical Corrections to the Harmonized Tariff Schedule of the United States for Duties Imposed Under Proclamation 11020 ↗ Defines the zero-rate specialty products, lists eligible jurisdictions and corrects the tariff schedule
In the documents' own words
Every quote on this page, checked word for word against the Federal Register text of the document named.
- Authority
“a report on his investigation into the effects of imports of pharmaceuticals and pharmaceutical ingredients on the national security of the United States under section 232 of the Trade Expansion Act of 1962”
Proclamation 11020 (91 FR 18183) ↗ - Status
“imposed a 100 percent ad valorem tariff on certain imports of patented pharmaceuticals and associated pharmaceutical ingredients, effective July 31, 2026 for the companies listed in Annex III of Proclamation 11020, and September 29, 2026 for all other companies”
Commerce (BIS) notice of Sep 23, 2026 (91 FR 60360) ↗ - What it covers
“impose a 100 percent ad valorem duty rate on the import of patented pharmaceuticals and associated pharmaceutical ingredients, as identified in Annex I to this proclamation”
Proclamation 11020 (91 FR 18183) ↗ - Rate: Patented pharmaceuticals and ingredients
“Imports of patented pharmaceuticals and associated pharmaceutical ingredients, as listed in Annex I to this proclamation, will be subject to a 100 percent ad valorem duty rate.”
Proclamation 11020 (91 FR 18183) ↗ - Rate: European Union, Japan, South Korea, Switzerland and Liechtenstein
“shall be 15 percent for products of Japan, the European Union, the Republic of Korea, and Switzerland and Liechtenstein jointly, unless a lower rate applies under clause (3) of this proclamation.”
Proclamation 11020 (91 FR 18183) ↗ - Rate: United Kingdom
“Therefore, the tariff rate for patented pharmaceuticals and associated pharmaceutical ingredients that are products of the United Kingdom is now zero.”
Commerce (BIS) notice of Aug 4, 2026 (91 FR 49406) ↗ - Rate: Companies with onshoring plans approved by Commerce
“shall be 20 percent for products of companies that have, or that the Secretary assesses are likely soon to have (e.g., based on agreements in principle), onshoring plans approved by the Secretary.”
Proclamation 11020 (91 FR 18183) ↗ - Rate: Companies with onshoring plans (scheduled increase)
“The aforementioned 20 percent rate shall increase to 100 percent on April 2, 2030.”
Proclamation 11020 (91 FR 18183) ↗ - Rate: Onshoring-plan companies with MFN pricing agreements
“and that have entered into MFN pharmaceutical pricing agreements with the Secretary of Health and Human Services, the applicable ad valorem tariff rate for pharmaceuticals and associated pharmaceutical ingredients shall be zero until January 20, 2029.”
Proclamation 11020 (91 FR 18183) ↗ - Rate: Companies with agreements listed in Annex II
“For avoidance of doubt, this zero tariff rate shall also apply per the terms of the agreements listed in Annex II to this proclamation.”
Proclamation 11020 (91 FR 18183) ↗ - Rate: Specialty pharmaceuticals from eligible jurisdictions or meeting an urgent U.S. health need
“This notice defines the pharmaceutical products and lists the jurisdictions that are eligible to receive an ad valorem tariff rate of zero pursuant to Presidential Proclamation 11020”
Commerce (BIS) notice of Sep 23, 2026 (91 FR 60360) ↗ - Rate: Clinical trial, research and non-commercial imports
“a new heading in Chapter 99 of the HTSUS with an ad valorem tariff rate of zero … solely intended for clinical trials, research and development, or other non-commercial applications.”
Commerce (BIS) notice of Sep 23, 2026 (91 FR 60360) ↗ - Rule: Generic pharmaceuticals, including biosimilars
“I have further determined not to adjust imports of generic pharmaceuticals and their associated ingredients, including biosimilar products, at this time.”
Proclamation 11020 (91 FR 18183) ↗ - Rule: Combination with the ordinary duty
“the sum of the additional section 232 tariff … and the applicable Column 1 Duty Rate shall be equal to the applicable rate … This clause does not apply to the tariff treatment for products of the United Kingdom”
Proclamation 11020 (91 FR 18183) ↗ - Rule: Ordinary duty higher than the listed rate
“unless the Column 1 Duty Rate is greater than the applicable rate listed in clause (3) of this proclamation, in which case only the Column 1 Duty Rate shall apply.”
Proclamation 11020 (91 FR 18183) ↗ - Rule: More than one rate applies
“If a product is subject to more than one rate of duty under this proclamation, then the lowest applicable rate shall apply.”
Proclamation 11020 (91 FR 18183) ↗ - Effective
“on or after 12:01 a.m. eastern daylight time on July 31, 2026, for the companies listed in Annex III to this proclamation and September 29, 2026, for other companies”
Proclamation 11020 (91 FR 18183) ↗ - Apr 2, 2026
“I concur with the Secretary's finding that pharmaceuticals and associated pharmaceutical ingredients are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security”
Proclamation 11020 (91 FR 18183) ↗ - May 13, 2026
“This notice announces the procedures for companies that manufacture pharmaceutical products to apply for company-specific agreements with the Department of Commerce (Commerce) to onshore manufacturing of pharmaceutical products and their ingredients.”
Commerce (BIS) notice of May 13, 2026 (91 FR 26989) ↗ - Jul 31, 2026
“12:01 a.m. eastern daylight time on July 31, 2026, for the companies listed in Annex III to this proclamation”
Proclamation 11020 (91 FR 18183) ↗ - Jul 31, 2026
“This notice revises the tariff rate on patented pharmaceuticals and associated pharmaceutical ingredients that are products of the United Kingdom from 10 percent to zero percent”
Commerce (BIS) notice of Aug 4, 2026 (91 FR 49406) ↗ - Sep 23, 2026
“eligible … Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, European Union, Guatemala, India, Indonesia, Japan, Jordan, Malaysia, North Macedonia, Republic of Korea, Switzerland and Liechtenstein, Taiwan, Thailand, United Kingdom, and Vietnam.”
Commerce (BIS) notice of Sep 23, 2026 (91 FR 60360) ↗ - Sep 29, 2026
“September 29, 2026, for other companies and shall continue in effect, unless such actions are expressly reduced, modified, or terminated.”
Proclamation 11020 (91 FR 18183) ↗ - Sep 29, 2026
“12:01 a.m. eastern time on September 29, 2026 … Inactive ingredients and excipients are not pharmaceutical articles. … or an unpatented animal health product.”
Commerce (BIS) notice of Sep 23, 2026 (91 FR 60360) ↗
Executive orders
FAQ
Q Are the Section 232 tariffs on patented pharmaceuticals and ingredients still in effect?
A Yes. Status: in effect, checked Oct 16, 2026 against the Federal Register. The documents schedule a rate change on Apr 2, 2030. Commerce (BIS) notice of Sep 23, 2026 (91 FR 60360) states: “imposed a 100 percent ad valorem tariff on certain imports of patented pharmaceuticals and associated pharmaceutical ingredients, effective July 31, 2026 for the companies listed in Annex III of Proclamation 11020, and September 29, 2026 for all other companies”
Q What is the rate under the Section 232 tariffs on patented pharmaceuticals and ingredients?
A Patented pharmaceuticals and ingredients: 100%, Section 232 duty plus Column 1 rate equals this rate (clause 7), from Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies; European Union, Japan, South Korea, Switzerland and Liechtenstein: 15%, Section 232 duty plus Column 1 rate equals this rate (clause 7), from Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies; United Kingdom: 0%, ad valorem, from Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies; Companies with onshoring plans approved by Commerce: 20%, Section 232 duty plus Column 1 rate equals this rate (clause 7), from Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies; Companies with onshoring plans (scheduled increase): 100%, Section 232 duty plus Column 1 rate equals this rate (clause 7), from Apr 2, 2030; Onshoring-plan companies with MFN pricing agreements: 0% until January 20, 2029, ad valorem, from Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies; Companies with agreements listed in Annex II: 0%, ad valorem, per the terms of each agreement, from Jul 31, 2026 for companies listed in Annex III; Sep 29, 2026 for other companies; Specialty pharmaceuticals from eligible jurisdictions or meeting an urgent U.S. health need: 0%, ad valorem, jurisdiction list published Sep 23, 2026; the notice states no effective date for the zero rate; Clinical trial, research and non-commercial imports: 0%, ad valorem, from Sep 29, 2026 (effective date of the tariff schedule changes in the September 23, 2026 notice). Proclamation 11020 (91 FR 18183): “Imports of patented pharmaceuticals and associated pharmaceutical ingredients, as listed in Annex I to this proclamation, will be subject to a 100 percent ad valorem duty rate.” Rates listed separately are not added together here.
Q When did the Section 232 tariffs on patented pharmaceuticals and ingredients take effect?
A Jul 31, 2026, 12:01 a.m. eastern daylight time (Annex III companies; Sep 29, 2026 for other companies). Proclamation 11020 (91 FR 18183): “on or after 12:01 a.m. eastern daylight time on July 31, 2026, for the companies listed in Annex III to this proclamation and September 29, 2026, for other companies”
Q What law are the Section 232 tariffs on patented pharmaceuticals and ingredients based on?
A Section 232 of the Trade Expansion Act of 1962. Proclamation 11020 (91 FR 18183): “a report on his investigation into the effects of imports of pharmaceuticals and pharmaceutical ingredients on the national security of the United States under section 232 of the Trade Expansion Act of 1962”
Method and limits: status reflects the Federal Register documents published up to Oct 16, 2026. For the duty on a specific product, check the Harmonized Tariff Schedule (chapter 99) and CBP's CSMS messages. Not legal or customs advice. How this tracker works.