TAIPEI (Taiwan News) — New US tariffs on patented drugs will have a limited impact on Taiwan, the Cabinet said Friday, citing a temporary exemption for the generic drugs that dominate its exports.
US President Donald Trump has ordered a 100% tariff on imported patented drugs. Taiwan is not on the exemption list, unlike the EU or Japan, which face a reduced 15% rate, per CNA.
The Cabinet’s Taiwan-US trade task force said that since the policy targets patented medicines, generic drugs and their inputs are exempt for one year, pending a review, which will help cushion the impact.
The task force explained that generics account for the bulk of Taiwan’s pharmaceutical shipments to the US. In 2024, Taiwan exported NT$8.46 billion (US$265 million) in generics, representing 86.5% of pharmaceutical exports to the US, per RTI.
By contrast, patented drugs made up just NT$1.32 billion, or 13.5% of exports. The task force said companies in this segment are planning to establish production capacity in the US.
The US order also offers preferential treatment for firms that agree to reshore manufacturing or adopt most-favored-nation pricing. For rare disease drugs and vaccines, the task force said there are currently no Taiwanese exports to the US, further limiting the policy’s impact on the sector.
Officials said they will maintain communication with US counterparts and strive for preferential treatment.
