Trade Winds Shift For Pharma: Understanding The Section 232 Tariff Proclamation On Pharmaceuticals

On April 2, 2026, President Trump signed a proclamation implementing tariffs on certain pharmaceutical products pursuant to Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. § 1862). The action imposes tariffs of 100% on “patented pharmaceuticals,” which includes active pharmaceutical ingredients and key starting materials (ingredients). However, there are also numerous exceptions and preferential treatment provisions, which mean that many pharmaceutical products will not be subject to tariffs or will be subject to lower tariff rates. The new duties will go into effect on July 31, 2026 for 17 large pharmaceutical companies named in the proclamation; however, most of those companies have tariff exemptions based on agreements with the administration, per the proclamation.¹ The tariffs are set to go into effect for all other companies on September 29, 2026.