The United States will apply a zero tariff rate to certain specialty pharmaceutical products and their associated ingredients imported from India and 19 other eligible jurisdictions.
The US Commerce Department has published the list of eligible jurisdictions as the country prepares to impose a 100 percent tariff on certain patented pharmaceutical products and related ingredients from September 29.
The tariff exemption covers medicines for rare diseases, nuclear medicines, plasma derived therapies, fertility treatments, cell therapies, gene therapies, antibody drug conjugates, certain medical countermeasures and animal health products. The associated ingredients of these medicines are also eligible for the zero tariff rate.
The other eligible jurisdictions are Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland and Liechtenstein, Taiwan, Thailand, the United Kingdom and Vietnam.
Under the published rules, qualifying pharmaceutical products from these jurisdictions can receive the zero tariff treatment because the jurisdictions have current or forthcoming trade and security framework agreements with the United States. Products meeting an urgent US health need may also qualify under the specified provisions.
The exemptions follow the April 2 presidential proclamation on pharmaceutical imports and are being implemented under Section 232 of the Trade Expansion Act.