CHINA

Chinese Drugmakers Shrug Off Broad U.S. Pharmaceutical Tariffs

Published: Apr. 3, 2026 3:03 p.m. GMT+8

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A pharmacist takes medication from a shelf at a pharmacy in Provo, Utah, U.S. Photo: VCG

Chinese pharmaceutical makers are positioned to comfortably evade a sweeping new 100% U.S. tariff on patented drugs, insulated by their reliance on exporting raw materials and a booming strategy of licensing domestic drug rights to overseas partners.

The long-brewing U.S. barrier on pharmaceutical imports has officially landed. In a fact sheet released April 2, the White House announced that Donald Trump is authorizing a 100% tariff on patented drugs and their underlying components. The aggressive levies will go into effect in 120 days for large enterprises, while small and medium-sized businesses have a 180-day grace period. Patented drugs typically encompass original brand-name therapeutics and their modified iterations.

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US imposes 100% tariff on patented drugs/components (120/180-day grace periods); Chinese firms evade via API exports and $135.65B out-licensing deals.
Exemptions: 15% for EU/Japan/SK/Switzerland/Liechtenstein/UK; 0% till 2029 for local manufacturing + MFN pricing.
Rationale: Section 232 finds national security threat; 53% patented drugs imported, APIs only 15% domestic.

AI generated, for reference only