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Drugmakers must disclose U.S. production plans to qualify for tariff exemptions

Recent reporting says the Trump administration imposed 100% tariffs on patented pharmaceuticals and certain pharmaceutical ingredients imported from most countries. Drugmakers can avoid or reduce the tariffs if they enter approved agreements with the Department of Health and Human Services tied to most-favored-nation pricing and onshoring production. Companies that submit official plans to build U.S. manufacturing facilities may receive a reduced 20% tariff rate during construction, with the rate set to rise later if no full relocation occurs. The White House said the policy is intended to protect national security, reduce reliance on imported medicines, and encourage domestic drug manufacturing. Generic drugs and biosimilars were not targeted by the action at this time. The proclamation applies Section 232 authority, which allows tariffs or import restrictions for national security reasons. Sources:

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