Trump imposes 100% tariffs on patented drug imports, naming Novo Nordisk and Lilly in first wave

On April 2, 2026, President Trump signed a proclamation imposing a 100 percent ad valorem tariff on imported patented pharmaceuticals, their active pharmaceutical ingredients and key starting materials ^[1][2]. The rates take effect July 31, 2026 for 17 large drugmakers named in an annex to the proclamation and September 29, 2026 for all other importers ^[2]. Supply Chain Dive reported the 17 companies include Eli Lilly and Co., Pfizer and Novo Nordisk ^[3].

How the rates work

Companies that hold onshoring plans approved by the Secretary of Commerce pay 20 percent instead of 100 percent, and that 20 percent rate rises to 100 percent on April 2, 2030 ^[1][2]. Companies that also sign most-favored-nation pricing agreements with the Department of Health and Human Services pay zero through January 20, 2029 ^[1][2]. Ropes & Gray, a law firm tracking the action, reported that 13 companies listed in an annex reached agreements with the government between December 2025 and March 2026, and that companies judged "likely soon to have" such agreements can also qualify ^[2].

Country-specific rates are 15 percent for the European Union, Japan, South Korea, and Switzerland and Liechtenstein jointly ^[1]. The proclamation sets the rate for the United Kingdom at 10 percent, dropping to zero to the extent required by a future US-UK pharmaceutical pricing agreement ^[1][4]. Supply Chain Dive, citing a Customs and Border Protection notice and a US Trade Representative document, reported that UK patented pharmaceuticals face a 0 percent tariff, with no tariffs on UK patented and non-patented pharmaceuticals from January 1, 2026 to January 19, 2029 ^[3]. The two accounts differ on the UK rate.

Generics and biosimilars, including their ingredients, are not subject to the tariffs now, though Commerce is to tell the president within one year, by April 2027, whether generic tariffs are warranted ^[2][3]. Ropes & Gray reported that a separate annex lists 526 tariff codes at a 0 percent rate ^[2]. Zero rates also apply to orphan drugs, nuclear medicines, plasma-derived therapies, fertility treatments, cell and gene therapies, antibody drug conjugates, medical countermeasures and animal-health products, but only if Commerce determines the products come from a jurisdiction with a trade and security framework agreement or meet an urgent US health need ^[1][2]. US-origin products are not subject "at this time" ^[2].

The proclamation cites FDA figures showing that as of 2025, about 53 percent of patented pharmaceutical products distributed in the United States were produced outside the country, and that only 15 percent of patented APIs by volume were domestically produced for the US market ^[1].

Why it matters for patients

Ropes & Gray wrote that if the tariffs are imposed, they "could significantly increase costs of branded drugs for manufacturers, patients, and payors," while also noting that the ultimate impact will vary widely depending on how products are classified, which exemptions apply and which company agreements are in place ^[2]. Whether any of those added costs reach US patients, and how quickly, has not been reported.

The proclamation covers finished drugs, biologics and related inputs classified under Chapters 29 and 30 of the tariff schedule ^[2]. Which specific brand-name products fall under the covered list is set out in an annex ^[2], and whether particular GLP-1 products are included has not been reported.

Two of the companies named in the first wave make GLP-1 medicines. Novo Nordisk makes Ozempic, Wegovy and Rybelsus, all semaglutide ^[3]. Lilly makes Mounjaro and Zepbound, both tirzepatide. Lilly's Lebanon, Indiana campus supports its diabetes and obesity franchises, including tirzepatide, and in May 2026 the company announced an additional $4.5 billion for two Lebanon sites ^[5].

What happens next

• July 31, 2026: tariffs begin for the 17 named companies ^[2].
• September 29, 2026: tariffs begin for other importers ^[2].
• Within 90 days of April 2, 2026: Commerce and Health and Human Services are to update the president on negotiations ^[1].
• April 2027: Commerce is to advise whether tariffs on generics are warranted ^[2].
• January 20, 2029: the zero rate for companies with pricing agreements expires ^[1][2].
• April 2, 2030: the 20 percent onshoring rate rises to 100 percent ^[1][2].

Ropes & Gray noted that it is unclear whether or how the FDA will be involved in supporting companies' onshoring plans, and that the timing and scope of the determinations needed for the specialty-product exemptions remain uncertain ^[2].