Overview

• President Trump invoked a Section 232 national security probe to propose duties of up to 200% on imported pharmaceuticals.
• The plan grants drug makers an 18-month grace period before tariffs take effect to allow supply-chain adjustments.
• The administration aims to reduce U.S. reliance on medications sourced primarily from China and India.
• Canada’s generic producers, which supply under 5% of U.S. prescriptions, warn of potential production cuts and domestic shortages without carve-outs.
• Industry leaders hope the pending Canada–U.S. economic and security agreement will lock in tariff-free access for Canadian drugs by July 21.