Overview

• Trump has proposed a 200% tariff on imported pharmaceuticals under Section 232, giving firms up to 18 months to relocate production or face the levy.
• Canada’s Generic Pharmaceutical Association warns the measure could force some domestic makers to exit markets and halt production because exports account for less than 5% of U.S. generics.
• India, which supplies around 40% of U.S. generic drug formulations, is exploring alternative markets as its industry cautions that steep levies could deepen U.S. shortages and shift reliance toward China.
• Australia’s Pharmacy Guild cautions that domestic manufacturing of medicines and vaccines could collapse without access to the U.S. market, undermining the country’s onshore capacity.
• The Section 232 investigation, initiated in April on national security grounds, is awaiting a Commerce Department report that will inform final tariff rules and potential carve-outs.