A broad 100% tariff on imported pharmaceuticals took effect at the end of September, part of a Section 232 action first announced in April. The tariff applies to patented drugs and their active ingredients, and the administration offered companies ways to reduce the burden, such as agreeing to sell drugs in the U.S. at prices comparable to other wealthy countries or moving production to the U.S.
According to STAT, companies that entered into most-favored-nation agreements were originally scheduled to begin paying tariff costs in July, but under their agreements they are now not required to pay until early 2029. That effectively exempts many of the largest U.S. drugmakers, leaving smaller biotech firms exposed to the levies.
Smaller companies and the industry group representing them say they are being left in the dark about how to obtain exemptions and need more guidance from the administration. The policy thus creates a sharp divide between large players that can negotiate or absorb the costs and smaller firms that must navigate the new trade regime without clear rules.