Gov't says impact of Trump's new tariffs on patented drugs 'controllable'

Taipei, April 3 (CNA) A task force under the Executive Yuan handling Taiwan-U.S. trade said Friday that the impact of new U.S. tariffs on patented drugs will be "controllable," as most of Taiwan's pharmaceutical exports to the United States are generic.

The comments followed an executive order signed Thursday by U.S. President Donald Trump imposing tariffs of up to 100 percent on imports of patented drugs and related ingredients, citing national security concerns under a Section 232 investigation.

The order sets a 20 percent tariff until April 2, 2030, for companies with approved plans to establish production in the U.S., while waivers apply to firms with agreements on pricing and domestic production.

The task force said in a statement issued Friday that 86.5 percent of Taiwan's pharmaceutical exports to the U.S., valued at NT$8.47 billion (US$265.21 million), are generic drugs and not currently affected.

However, the order states that the tariff-free status of generic drugs will be reviewed within one year.

The remaining 13.5 percent, or NT$1.32 billion in patented drugs, involve companies that have already planned U.S.-based production, it added.

"Overall, the impact on Taiwan's pharmaceutical industry is controllable, and the government will continue to work closely with industry stakeholders to respond," the task force said.

The task force said it will continue engaging with Washington to ensure preferential treatment for generic drugs is maintained.

In a separate statement, the Taiwan Generic Pharmaceutical Association said the short-term impact would be limited, though long-term effects on innovative drug development warrant attention.

Some Taiwanese companies, including Bora Pharmaceuticals and PharmaEssentia, have already begun or committed to production in the U.S., the association said.