US exempts certain speciality medicines from tariffs for India and 19 others

The United States will not impose ad valorem tariffs on specified speciality medicines and related ingredients imported from India and 19 other countries and jurisdictions, according to a Commerce Department notice. The exemptions take effect as the US prepares to impose a 100 per cent tariff on certain patented pharmaceutical imports and their associated ingredients from September 29. The tariff policy was introduced under a presidential proclamation issued by Donald Trump in April to encourage domestic pharmaceutical production.

Products eligible for the zero tariff include medicines for rare diseases and infertility, cell and gene therapies, antibody-drug conjugates and animal pharmaceuticals. Components used in those products are also covered. The other jurisdictions listed are Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, Britain and Vietnam.

The notice said qualifying products from the jurisdictions had access to the exemption because they had a current or forthcoming trade and security framework agreement with the United States. It forms part of the implementation of the administration’s Section 232 pharmaceutical measures. Generic medicines and their associated ingredients are not subject to the Section 232 tariffs, the department said.

The notice also clarified that pharmaceutical articles covered by the policy include finished products, active pharmaceutical ingredients and key starting materials, and that unpatented animal-health products fall within the generic category.