The U.S. Commerce Department has just notified India and 19 other countries that they will not pay the 100‑percent tariff on certain specialty medicines, effective immediately after the Federal Register announcement.
The exemption covers drugs for rare diseases, fertility treatments, advanced cell and gene therapies, antibody‑drug conjugates, veterinary health products, and the key components used to produce them.
The measure follows a Trump‑era tariff imposed in April 2021, which slapped a 100‑percent duty on patented biologics and related ingredients; the tariffs began on July 31 and expanded on September 29.
Under the new zero‑duty framework, goods qualify only if the exporting country is part of an existing or upcoming trade or security framework agreement with the U.S., ensuring that only vetted partners benefit.
Indian pharmaceutical companies have welcomed the decision, saying it will lower costs for producing life‑saving therapies and ease the supply chain for rare‑disease patients.
The exemption will take effect as soon as customs clearance processes are updated, with the Commerce Department monitoring compliance and adjusting rates as necessary.