The United States has granted zero Section 232 tariff treatment to certain specialty pharmaceutical products and associated ingredients imported from Bangladesh.
The tariff exemption covers medicines for rare diseases, fertility treatments, cell therapies and gene therapies, as Washington prepares to impose a 100 per cent tariff on certain patented pharmaceutical imports from 29 September.
According to a notice published by the US Department of Commerce in the Federal Register, eligible products from Bangladesh and 19 other jurisdictions will receive a zero per cent tariff rate. The list includes India, Argentina, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Japan, Jordan, Malaysia, North Macedonia, South Korea, Switzerland, Liechtenstein, Taiwan, Thailand, Britain and Vietnam.
The zero tariff treatment covers drugs designated for rare diseases, infertility treatments, cell therapies, gene therapies, antibody-drug conjugates (ADCs) and animal pharmaceuticals, as well as associated pharmaceutical ingredients and components.
The Commerce Department said qualifying products from the listed jurisdictions could receive the zero tariff treatment because they have a current or forthcoming trade and security framework agreement with the US, or because the products meet an urgent US health need.
The measure comes as the US prepares to impose a 100 per cent Section 232 tariff on certain patented pharmaceuticals and associated ingredients. For most companies, the tariff takes effect on 29 September, although lower rates and exemptions apply in some cases.
On 2 April, US President Donald Trump issued a proclamation to impose tariffs on imports of patented pharmaceuticals, biologics and associated ingredients under Section 232 of the Trade Expansion Act, as part of efforts to encourage domestic production.
Generic pharmaceutical products and their associated ingredients are currently excluded from the Section 232 pharmaceutical tariffs.
