Taiwan will invoke preferential tariff mechanisms after the United States announced plans to impose a 100% tariff on imported patented pharmaceutical products, the Cabinet's Taiwan-U.S. Economic and Trade Task Force said Friday, April 3.

U.S. President Donald Trump imposed tariffs on patented pharmaceuticals and their ingredients under Section 232 of the 1962 Trade Expansion Act to “bolster American national security and public health,” according to a White House fact sheet published Thursday.

The tariffs, also announced Thursday, will come into effect in 120 days for large companies and 180 days for smaller companies, the White House said.

In response to the announcement, the Taiwan-U.S. Economic and Trade Task Force said Taiwan exported NT$1.32 billion (nearly US$40 million) worth of patented drugs to the U.S. in 2024, accounting for 13.5% of the value of Taiwan’s drug exports.

The U.S. has temporarily exempted generic drugs and their raw materials from the tariff and will reassess the exemption within one year, the task force said. Taiwan exported nearly NT$8.5 billion (US$270 million) worth of generic drugs to the U.S. in 2024.

The overall impact on Taiwan’s pharmaceutical industry is considered “controllable,” the task force said, adding that the government will continue cooperating closely with industry stakeholders.