U.S. grants zero tariff on specialty drugs and ingredients from India and 19 other nations

In a Federal Register notice, the U.S. Commerce Department detailed a zero-percent ad valorem tariff for a range of specialty medicines and related ingredients sourced from India and nineteen additional countries. Eligible items include treatments for rare conditions, infertility, cell and gene therapies, antibody-drug conjugates and animal pharmaceuticals, as well as the raw materials used to make them. The tariff relief applies because these nations have current or upcoming trade and security framework agreements with the United States.

Concurrently, the administration is set to enforce a 100% tariff on certain patented pharmaceuticals and biologics, a measure that will take effect on September 29 for companies listed in a later annex. Generic medicines and unpatented animal health products are not subject to the Section 232 tariff. The notice also clarifies definitions for "generic pharmaceutical articles" and "pharmaceutical articles," limiting the latter to finished products, active ingredients and key starting materials.