The United States will forgo tariffs on specific specialty drugs and related components utilized in treating rare medical conditions originating from India and 19 additional nations. The US Commerce Department formally released the designated list within the Federal Register, coinciding with preparations to implement a 100 percent tariff on select patented pharmaceutical imports and their associated ingredients, effective September 29. A proclamation issued by President Donald Trump on April 2 authorized the imposition of tariffs on imports of patented pharmaceuticals, biologics, and related ingredients into the US, undertaken to stimulate domestic manufacturing. Products qualifying for the zero percent tariff designation encompass all drugs indicated for rare diseases, infertility treatments, cell therapies, gene therapies, antibody-drug conjugates (ADCs), and animal pharmaceuticals. The constituent elements of these drugs are likewise subject to a zero percent tariff rate.

Alongside India, the nations included in the zero tariff rate classification 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 indicated that eligible products originating from these regions may benefit from a zero per cent tariff due to existing or prospective trade and security framework agreements with the US. These exemptions are a component of the execution of Trump’s April proclamation modifying imports of pharmaceuticals and pharmaceutical ingredients under Section 232 of the Trade Expansion Act.