The United States has announced that it will not impose a 100% tariff on certain specialty drugs and associated ingredients imported from India and 19 other countries. This decision is part of the implementation of President Donald Trump's proclamation from April, which adjusts imports of pharmaceuticals and pharmaceutical ingredients under Section 232 of the Trade Expansion Act.
Details of the Exemption
The US Commerce Department published the list of exempt countries in the Federal Register as it prepares to impose tariffs on certain patented pharmaceutical imports starting September 29. An ad valorem tariff is defined as a set percentage of the monetary value of the goods to be taxed, according to the World Customs Organisation.
Eligible products for the zero percent tariff rate include:
- Drugs designated for rare diseases
- Infertility treatments
- Cell therapies
- Gene therapies
- Antibody-drug conjugates (ADCs)
- Animal pharmaceuticals
Components of these drugs will also benefit from the zero percent tariff rate.
Countries Included in the Exemption
In addition to India, the other countries that will enjoy this exemption are:
- Argentina
- Bangladesh
- Cambodia
- Ecuador
- El Salvador
- European Union
- Guatemala
- Indonesia
- Japan
- Jordan
- Malaysia
- North Macedonia
- South Korea
- Switzerland
- Liechtenstein
- Taiwan
- Thailand
- Britain
- Vietnam
