In effectSection 232 / PharmaceuticalsSep 29, 2026
Pharmaceuticals: Section 232 duty now applies to all importers on 149 listed lines
THE DUTY. From 12:01 a.m. Eastern on September 29, 2026, the Section 232 duty on patented pharmaceuticals applies to every importer, not only the Annex III companies that have paid since July 31. The rate is 100 percent under HTSUS 9903.04.60; 15 percent for products of Japan, European Union member states, South Korea, Switzerland and Liechtenstein under 9903.04.62; and 0 percent for products of the United Kingdom under 9903.04.63. U.S.-origin pharmaceuticals are not subject.
COMBINED RATES. CBP gives the 100 percent and 15 percent rates as combined column one and Section 232 rates (CSMS #70054007). The normal duty is inside them, not added on top: an ingredient with a 6.5 percent general rate from China pays 100 percent in total, not 106.5 percent.
SCOPE. Commerce's notice of September 23 (91 FR 60360) replaced the product list in U.S. note 40(c). The duty reaches only 149 listed ten-digit provisions in chapters 29 and 30. Chapter 30 products that are not on the list, such as bandages and lubricating gels, are outside it, and inactive ingredients and excipients are not pharmaceutical articles (9903.04.69).
SPECIALTY PRODUCTS. The 0 percent rate for orphan drugs, nuclear medicines, plasma-derived therapies, fertility treatments, cell and gene therapies, antibody drug conjugates, medical countermeasures and animal health products now applies only to products of eligible jurisdictions (9903.04.66): Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, India, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, the United Kingdom and Vietnam. This replaces the origin-free carve-out described in our July 30 entry. From other origins, including China, Canada, Mexico, Singapore and Israel, these products pay the country rate unless Commerce approves them for an urgent U.S. health need.
OTHER HEADINGS. Generic pharmaceutical articles stay at 0 percent (9903.04.67). Articles solely for clinical trials, research and development or other non-commercial use enter at 0 percent under 9903.04.70. Companies with an approved onshoring plan pay 20 percent (9903.04.64), rising to 100 percent on April 2, 2030. When more than one rate applies, the lowest applies.
IN THE CALCULATOR. Every quote applies the 149-line list, the country rates and the combined-rate rule. The HTS code cannot show whether a product is patented, generic or for clinical use, so the calculator assumes a patented product and lists the other headings as notes.