US Waives Tariffs on Specialty Drugs from India and Other Countries

The United States will exempt certain specialty medicines and their ingredients imported from India and 19 other countries from the new pharmaceutical tariffs.

The exemption comes as the US prepares to impose a 100% tariff on certain patented pharmaceuticals and their ingredients from September 29. The policy follows an April 2 order by President Donald Trump aimed at encouraging pharmaceutical companies to increase production in the United States.

The zero-tariff exemption covers medicines used for rare diseases, infertility treatments, cell and gene therapies, and antibody-drug conjugates (ADCs). Ingredients used to manufacture these products will also qualify for the exemption. Veterinary pharmaceuticals are included as well.

India is among the countries covered by the policy, along with 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.

According to the US Commerce Department’s notice, qualifying products from these countries can receive zero-tariff treatment because the countries have existing or upcoming trade and security agreements with the US.

The exemption is part of the implementation of Trump’s April proclamation concerning pharmaceutical imports under Section 232 of the Trade Expansion Act, which allows the US government to impose trade restrictions on imports considered relevant to national security.