The Digester
politics

Trump orders 100% tariff on patented drug imports, with CSL carve-outs

President Trump signed an executive order imposing a default 100 percent tariff on imported patented drugs, while granting lower rates, relocation discounts and specific exemptions for plasma therapies and eligible companies.

Apr 2nd 2026 · United States

Insights

  • The executive order sets a standard 100 percent tariff on foreign patented pharmaceuticals.
  • The EU, Japan, South Korea and Switzerland face a 15 percent rate and the UK a lower rate under carve-outs.
  • Companies that relocate production to the US can reduce the tariff to 20 percent.
  • Plasma derived therapies are set to be tariff free if they come from a country with a US trade deal or meet an urgent US health need.
  • CSL may seek exemption by filing a plan with the US Commerce Department and has US manufacturing expansion underway.
  • Large firms have 120 days before the tariffs take effect and smaller firms have six months, with new facilities required by January 2029.

Sources