The United States has made a significant shift in its international trade policy. Washington has exempted specified specialized medicines and related ingredients imported from 20 partner countries and regions, including Bangladesh and India, from import tariffs.
This decision comes at a time when the US is moving forward with a process to impose a 100% tariff on certain patented pharmaceutical products.
According to a report by Indian news agency ANI, the US Department of Commerce published an official list in the country's Federal Register to formalize this new tariff structure.
The publication specifies the names of the countries and regions covered under the zero-tariff benefit, along with the corresponding product categories.
Under the directives, duty-free products include medicines used to treat rare diseases, fertility treatment drugs, advanced cell and gene therapies, antibody-drug conjugates (ADCs), and veterinary medicines.
Basic ingredients or raw materials—Active Pharmaceutical Ingredients (APIs)—used to manufacture these medicines will also receive the 0% duty privilege.
In addition to Bangladesh and India, the list of countries and regions receiving duty exemptions includes Argentina, Cambodia, Ecuador, El Salvador, the European Union (EU), Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, the United Kingdom, and Vietnam.
According to the official notice, the specified goods exported from these countries and regions will receive 0% tariff benefits because they have active or prospective trade and security framework agreements with Washington.
The basis for this change stems from an April directive by President Donald Trump.
Under Section 232 of the Trade Expansion Act, that announcement directed a modification in the tariff structure for imported pharmaceutical products and related chemical ingredients.
Earlier, the original April 2 announcement imposed a 100% tariff on specified patented medicines, biological products, and related components.
Boosting domestic manufacturing of these products within the United States was the broader objective of this policy.
For companies on the primary list, tariffs took effect on July 31, while for other listed companies, the tariff becomes effective on September 29.
However, the US Department of Commerce confirmed that generic medicines and ingredients used to make them remain excluded from Section 232 pharmaceutical tariffs.
Recent administrative amendments have also introduced key technical changes to the original announcement.
As a result, the definition of "generic pharmaceutical articles" has been further clarified to include off-patent veterinary drugs.
At the same time, the scope of what constitutes "pharmaceutical articles" has been specifically defined.
This category will strictly include finished pharmaceuticals, active pharmaceutical ingredients (APIs), and key advanced starting materials.
