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US Exempts Speciality Drugs From India From New Tariff

13 hours ago

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The US will apply a zero tariff on speciality drugs for rare conditions imported from India and 19 other nations, as a 100% pharma levy takes effect Sept 29.

The United States will charge no ad valorem tariff on a defined set of speciality medicines and their ingredients used to treat rare conditions when they arrive from India, alongside 19 other countries. The exemption was set out by the US commerce department in a notice published in the Federal Register.

The carve-out comes as Washington prepares to apply a 100% tariff on certain patented pharmaceutical imports and their associated ingredients starting September 29. The commerce department listed the eligible countries as it readied that measure.

The levy traces back to April 2, when President Donald Trump signed a proclamation ordering tariffs on imports of patented pharmaceuticals, biologics and their ingredients. The stated aim is to push more drug manufacturing onto US soil.

Several categories of high-value medicine qualify for the zero rate. These cover treatments designated for rare diseases, infertility therapies, cell therapies, gene therapies, antibody-drug conjugates and pharmaceuticals for animals. The components that go into making these drugs also fall under the zero tariff.

Generic drugs sit outside the new regime entirely. According to the department's notice, generic pharmaceutical products and the ingredients tied to them are not covered by the Section 232 pharmaceutical tariffs.

The distinction matters for India, a major supplier of medicines to the American market. By sparing both a slice of speciality products and the broad generic segment, the exemptions narrow the reach of the incoming duty for Indian exporters.

India pharma exports, US pharmaceutical tariff, speciality drugs, rare disease drugs, Section 232 tariff, Trump pharma tariff, gene therapy imports, patented pharmaceuticals

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