Pharmaceuticals Tariff Rates 2026: US Import Duties by Country & HTS Code

What This Covers

The pharmaceuticals surcharge covers medications, active pharmaceutical ingredients (APIs), medical instruments, and medical devices classified under HTS chapters 30 and 90. Most finished pharmaceutical products enter the United States duty-free, reflecting longstanding policy prioritizing affordable access to medicines. The Supreme Court's February 20, 2026 ruling struck down IEEPA reciprocal tariffs, and all pharmaceutical-exporting countries now face a uniform 10% Section 122 tariff (effective February 24, 2026; scheduled to sunset ~July 24, 2026). This Section 122 tariff is legally contested: the Court of International Trade ruled it unlawful on May 7, 2026, but the Federal Circuit stayed that injunction on June 11, 2026, so CBP continues collecting the 10% pending appeal. For products with a 0% base rate, this 10% Section 122 tariff constitutes the entire duty burden.

Most Affected Countries

Ireland, the European manufacturing hub for many major drug companies, moved onto the EU-US trade deal on July 1, 2026: EU pharmaceuticals are capped at 15% all-inclusive, and from September 1, 2026 generic pharmaceuticals plus their ingredients and chemical precursors revert to MFN-only rates — typically 0%. The deal also shields EU producers from the threatened 100% tariff on branded pharmaceutical imports tied to the July 31, 2026 onshoring deadline. India, the world's leading supplier of generic medications and APIs, benefits from the 10% Section 122 rate, which is lower than India's former country-specific IEEPA rate. Switzerland and the United Kingdom (non-EU) stay at 10% Section 122, while Germany trades under the EU's 15% pharma cap.

How Surcharges Stack

For most finished pharmaceuticals with a 0% base rate, the 10% Section 122 tariff represents the entirety of the duty burden — a simpler calculation than the old regime of varying reciprocal rates by country. An API sourced from India now faces a 10% Section 122 tariff applied to the full ingredient value, which while not insignificant is lower than India's former IEEPA rate. Medical devices and pharmaceuticals from Germany and other EU countries fall under the EU deal's 15% all-inclusive ceiling as of July 1, 2026 — no base duty stacks on top — and EU generics plus their ingredients go MFN-only from September 1, 2026. Products from Israel may benefit from the US-Israel FTA, potentially reducing or eliminating the Section 122 tariff impact. The temporary nature of Section 122 (scheduled to sunset ~July 2026) means pharmaceutical supply costs could decrease further in the near term.

Sourcing Strategies

Pharmaceutical sourcing now splits along three lines: EU sources (Ireland, Germany) capped at 15% with generics going MFN-only September 1, 2026; non-EU sources at 10% Section 122; and USMCA/FTA sources potentially duty-free. Companies should ensure their products are properly classified, as the distinction between finished pharmaceuticals, APIs, and devices determines both the rate and the September 1 MFN-only eligibility for EU generics. For APIs and intermediates from India and China, the 10% rate reduces but does not eliminate the tariff incentive to explore alternative suppliers. Planning for Section 122's July 24, 2026 expiration is especially important for multi-year supply agreements — USTR has proposed 12.5% Section 301 duties on 46 countries, including API powerhouse India, as the replacement.