US exempts Bangladesh, 19 other countries from tariffs on speciality drugs

The US will not impose ad valorem tariffs on certain speciality drugs and associated ingredients used to treat rare medical conditions imported from Bangladesh and 19 other countries.

The US Commerce Department published the list of eligible countries in the Federal Register as the administration prepares to impose a 100% tariff on certain patented pharmaceutical imports and their associated ingredients from September 29.

On April 2, President Donald Trump issued a proclamation imposing tariffs on imports of patented pharmaceuticals, biologics and associated ingredients into the US as part of efforts to encourage domestic production.

Products eligible for the zero-tariff rate include drugs designated for the treatment of rare diseases and infertility, as well as cell therapies, gene therapies, antibody-drug conjugates (ADCs) and animal pharmaceuticals. Components of these drugs are also eligible for the zero-tariff rate.

Besides Bangladesh, the other countries and jurisdictions covered by the exemption are Argentina, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, India, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, the United Kingdom and Vietnam.

The notice said qualifying products from these jurisdictions could receive the zero-tariff rate because they have a current or forthcoming trade and security framework agreement with the US.