WASHINGTON, D.C. —At 12:01 a.m. Tuesday, Sept. 29, the Trump administration will expand its Section 232 tariffs on patented pharmaceuticals and pharmaceutical ingredients to companies not covered by the first phase of the policy. The baseline tariff is 100%, although a web of country exemptions, onshoring agreements, and drug-pricing deals can substantially reduce or eliminate the levy.
The Consumer Choice Center (CCC) warns that the policy risks making access to medicines more dependent on politics than on genuine competition in the marketplace.
“Calling a 100% tax on medicine a national security policy doesn’t change who ultimately pays for it,” said Jay Goldberg, North American Affairs Manager at the Consumer Choice Center. “The administration has created a system where one drugmaker can face a massive tariff while another can negotiate its rate down to zero. That’s not a durable strategy for affordable medicines or resilient supply chains. It’s industrial policy and drug-price controls enforced at the border.”
The tariffs stem from an April 2 presidential proclamation imposing a 100% baseline duty on covered patented medicines and ingredients under Section 232 of the Trade Expansion Act. The first phase took effect on July 31 for companies specifically listed by the administration. The broader phase begins Sept. 29.
Companies with approved plans to move production to the United States can qualify for a 20% rate. Those that pair qualifying onshoring commitments with Most-Favored-Nation (MFN) pricing agreements with the Department of Health and Human Services can receive a zero tariff rate through Jan. 20, 2029. Separate rates also apply to medicines imported from several major U.S. trading partners.
“Washington is trying to solve two different problems with one very expensive hammer,” Goldberg said. “If the goal is stronger pharmaceutical supply chains, remove the regulatory barriers that make it slower and more expensive to manufacture medicines in America. If the goal is lower prices for patients, encourage competition and make sure discounts actually reach them. Tariffs and imported price controls risk doing the opposite by raising costs and weakening the incentives that bring new treatments to market.”
Generic drugs and biosimilars are not currently subject to the Section 232 pharmaceutical tariffs. The administration is required to reassess the treatment of generics within one year.
CCC has consistently warned that tariffs are ultimately taxes borne by consumers and businesses. Its June 2026 report, Are Tariffs Making America Great Again?, documented how tariffs on steel, aluminum, and copper raise costs throughout the economy. CCC has likewise warned that MFN pharmaceutical pricing effectively imports foreign price controls into the U.S. market and could undermine investment in future medicines.
Congress and the Trump administration should work together to pursue resilient pharmaceutical supply chains through regulatory reform and open trade with reliable partners rather than forcing patients to bear the costs of tariffs and government-negotiated price controls.