US grants zero-tariff treatment to select Bangladeshi specialty drugs

The United States has approved zero per cent Section 232 tariff treatment for certain specialty pharmaceutical products and related ingredients imported from Bangladesh.

The exemption covers medicines for rare diseases, fertility treatments, cell and gene therapies, antibody-drug conjugates (ADCs) and animal pharmaceuticals, along with their associated ingredients and components. The measure comes as Washington prepares to impose a 100 per cent Section 232 tariff on certain patented pharmaceutical imports from September 29.

According to a notice issued by the US Department of Commerce and published in the Federal Register, eligible products from Bangladesh and 19 other jurisdictions will qualify for the zero-tariff treatment. The jurisdictions include 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 Commerce Department said products from these jurisdictions are eligible either because the countries have a current or forthcoming trade and security framework agreement with the United States, or because the products address an urgent US healthcare need.

The decision comes ahead of Washington's planned 100 per cent Section 232 tariff on certain patented pharmaceuticals and related ingredients. For most companies, the new tariff is scheduled to take effect on September 29, although lower rates and exemptions will apply in certain cases.

US President Donald Trump issued a proclamation on April 2 directing the imposition of Section 232 tariffs on imports of patented pharmaceuticals, biologics and related ingredients under the Trade Expansion Act, as part of efforts to encourage greater domestic pharmaceutical production.

Generic pharmaceutical products and their associated ingredients are currently excluded from the Section 232 pharmaceutical tariffs.