Section 232 pharmaceutical tariffs take effect for 17 named companies

The Trump administration's Section 232 tariffs on imported patented pharmaceuticals took effect at 12:01 a.m. EDT on July 31, 2026, for the 17 drugmakers named in Annex III of the April 2, 2026 proclamation ^[1]. Everyone else importing covered products has until September 29, 2026 ^[1]. The headline rate is 100%, but most of the named companies qualify for reduced or zero rates under deals already struck with the government ^[1].

What the rules actually say

The proclamation applies to patented drugs tied to a valid US patent and listed in the FDA's Orange Book or Purple Book, plus their active pharmaceutical ingredients and key starting materials ^[1]. That covers more than 130 tariff lines, filed under new Chapter 99 headings 9903.04.60 through .69 ^[1].

The rate depends on the company and the country of origin ^[1][2]:

• 100% if nothing else applies ^[2].
• 20% for companies with an onshoring plan approved by the Secretary of Commerce, rising to 100% on April 2, 2030 ^[2].
• Zero until January 20, 2029 for companies that have both an approved onshoring plan and a most-favored-nation drug pricing agreement with the Department of Health and Human Services ^[2].
• 15% for products of the European Union, Japan, South Korea, and Switzerland and Liechtenstein; 10% for the United Kingdom, with a possible drop to zero under a future agreement ^[2].
• Zero for categories including orphan drugs, cell and gene therapies, plasma-derived therapies, fertility treatments, antibody-drug conjugates and nuclear medicines, subject to conditions ^[2].

Thirteen of the 17 Annex III companies already had agreements listed in Annex II, so their day-one rate follows the deal rather than the 100% default ^[1]. There is no in-transit exception: what matters is the day goods clear customs, not the day they shipped ^[1].

One trade-industry summary names nine of the 17 companies — Pfizer, Johnson & Johnson, Merck, Eli Lilly, AbbVie, Amgen, AstraZeneca, Novartis and Sanofi — and does not spell out the remaining eight ^[1]. Eli Lilly makes tirzepatide (Mounjaro and Zepbound). The sources reviewed here do not confirm which other companies appear on the list, so the exact treatment of any individual GLP-1 product is not established by these documents.

The government's stated rationale: as of 2025, about 53% of patented pharmaceutical products sold in the US were produced outside the country, and only about 15% of patented APIs by volume were made domestically for the US market ^[2]. The White House says the policy has drawn roughly $400 billion in promised US pharmaceutical manufacturing ^[1].

Why it matters for patients

Tariffs are paid by importers at the border, not at the pharmacy counter. Whether any of this cost reaches US patients depends on company pricing decisions and insurance contracts, and the sources here do not address retail or list prices for any specific drug. That is not yet known.

The structure does create pressure in two directions. Companies that sign MFN pricing agreements with HHS get a zero tariff rate, which links tariff relief directly to what the government pays for drugs ^[2]. At the same time, the relief has expiration dates built in: the zero rate runs only through January 20, 2029, and the 20% onshoring rate jumps to 100% on April 2, 2030 ^[2].

Generics and biosimilars are excluded — but the proclamation says only "at this time," and Commerce has one year to recommend adding them ^[1][2]. That exclusion also covered generic purchases for the Strategic API Reserve ^[2]. More than 400 tariff lines, including many antibiotics, vitamins and hormones, get a zero rate under Annex IV ^[1].

What happens next

• September 29, 2026: the tariffs take effect for all other importers of covered products ^[1].
• Within one year of April 2, 2026: Commerce is expected to complete its review of whether to add generics and biosimilars ^[1].
• January 20, 2029: the zero-tariff tier expires ^[2].
• April 2, 2030: the 20% onshoring rate rises to 100% ^[2].