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Japan exempts generics from baseline 15% tariff: 4 updates

09/10/2025|Source Author|

As part of a new trade agreement with the U.S., Japan is exempting generic pharmaceuticals, their ingredients and chemical precursors from the 15% baseline tariff applied to nearly all other U.S. imports. 

Here are four tariff updates:

  1. Under the agreement with the U.S., Japan will not apply the new 15% baseline tariff to generic drugs and their components. The agreement includes broader commitments beyond generics, such as increased purchases of U.S. agricultural goods and a $550 billion Japanese investment in U.S. industries, according to an Sept. 4 White House fact sheet.
  2. This comes after President Donald Trump signed an executive order modifying the scope of tariffs for certain imports, including pharmaceuticals. However, tariff reductions on pharmaceutical products will only be reduced if foreign partners strike trade deals with the U.S. 
  3. President Trump’s sweeping tariffs on foreign nations were recently ruled unlawful by the U.S. Court of Appeals for the Federal Circuit. The court found he had exceeded authority by declaring national emergencies to justify broad tariff actions, CBS News reported Sept. 1. 

    As a result, President Trump appealed to the Supreme Court, requesting a hearing. The Supreme Court agreed to hear two related cases, with oral arguments set for November, NBC News reported Sept. 9. The cases will decide whether President Trump had legal authority to impose sweeping tariffs without congressional approval under the 1977 International Emergency Economic Powers Act. 

  4. Although challenged, the tariffs remain active during the appeals process. This includes a baseline 10% baseline tariff imposed April 2 on all foreign imports and additional duties of up to 50% on trading partners that failed to reach trade deals. The ruling does not apply to separate tariffs imposed on steel, aluminum, cars or China-specific measures from President Trump’s first term.

The post Japan exempts generics from baseline 15% tariff: 4 updates appeared first on Becker’s Hospital Review | Healthcare News & Analysis.

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