U.S. expected to exclude generics from drug tariffs

The Trump administration is expected to exclude generic drugs from proposed pharmaceutical tariffs, but it remains unclear whether biosimilars, which make up about 60 percent of South Korea’s drug exports to the United States, will be included. This uncertainty is likely to keep the industry on edge.

The Wall Street Journal reported on Oct. 8 that the U.S. government plans to exempt generic drugs. White House Deputy Spokesman Kush Desai said Washington is not considering Section 232 tariffs on generics. The U.S. Commerce Department added that the Section 232 investigation is not expected to lead to tariffs on these medicines.

U.S. President Donald Trump ordered a Section 232 investigation into pharmaceutical tariffs. In April, the Commerce Department began reviewing finished generics, brand-name drugs, and active pharmaceutical ingredients. Section 232 allows the president to impose import restrictions or higher tariffs if foreign products are deemed a national security threat.

The Trump administration’s recent statements suggest a major narrowing of the proposed tariff scope. The shift reflects the United States’ heavy reliance on imported generics. According to the KoreaBIO Association, generics account for about 90 percent of U.S. prescriptions, with most ingredients produced in India and China.

No announcement has been made on whether biosimilars, a major South Korean export, will be exempt. South Korea’s leading biosimilar makers, Celltrion and Samsung Bioepis, generate roughly 34 percent and 25 percent of their total revenue from U.S. sales, respectively.


최지원기자 jwchoi@donga.com