US Exempts India Specialty Drugs as 100% Pharma Tariff Looms — SkimNews
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- US Commerce Department published a notice granting a zero per cent ad valorem tariff rate on certain speciality drugs and related ingredients imported from India and 19 other jurisdictions.
- The zero per cent exemption covers products used to treat rare medical conditions, infertility, cell therapies, gene therapies, antibody-drug conjugates, and animal pharmaceuticals, including their components.
- The 20 qualifying jurisdictions — including the EU, Japan, South Korea, UK, Taiwan, Switzerland, and Vietnam — qualify because they have a current or forthcoming trade and security framework agreement with the US.
- Washington will impose a 100 per cent tariff on specified patented pharmaceuticals and associated ingredients, effective September 29 for companies not already named in an earlier annex.
- The 100 per cent rate already took effect July 31 for companies listed in one annex, stemming from President Donald Trump's April 2 proclamation under Section 232 of the Trade Expansion Act to encourage domestic production.
- Generic pharmaceuticals and their associated ingredients are not subject to the Section 232 pharmaceutical tariffs, with the notice issuing technical corrections including classifying unpatented animal health products as generics.
Why it matters: India and 19 other jurisdictions holding US trade and security framework agreements get relief on specialty drug imports — covering rare-disease, gene, and cell therapies — while Washington simultaneously slaps a 100 per cent tariff on patented drugs from September 29 to pull production back onshore.
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