Pharma Companies Eye ‘First Sale’ Rule to Lessen Tariff Costs Amid New US Trade Measures
The 'first sale' rule is a legal trade mechanism that allows importers, including pharmaceutical companies, to reduce tariff liabilities by declaring a lower transaction value on goods, specifically the price paid in the first sale of a multi-tiered supply chain, rather than the final sale into the US market1.
Recent US policy changes have imposed or threatened significant tariffs on pharmaceutical imports, raising industry concerns about increased costs and prompting companies to seek ways to mitigate these impacts51.
The Trump administration recently closed the de minimis exemption for duty-free low-value imports from China, subjecting even small shipments to tariffs as of May 2025, further raising the stakes for cost minimization by importers2.
Pharmaceutical companies are now considering greater use of the 'first sale' rule to lower declared customs values, as new tariffs and trade restrictions loom, but the precise regulatory scrutiny and future rules governing this practice remain uncertain15.
Sources:
1. https://endpts.com/pharma-companies-consider-first-sale-rule-to-ease-tariff-impact/
2. https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-closes-de-minimis-exemptions-to-combat-chinas-role-in-americas-synthetic-opioid-crisis/
5. https://healthcarelifesciences.bakermckenzie.com/2025/05/02/us-tariffs-and-the-life-science-industry-an-update/