Smaller biotech firms face uncertainty over U.S. tariff exemptions as new import taxes take effect

A broad 100% tariff on imported pharmaceuticals introduced at the end of September under the Trump administration has created confusion for many biotech companies.

While large drugmakers can use existing most-favored-nation agreements to defer payments until 2029, smaller biotech firms lack clear guidance on qualifying for exemptions.

Industry groups say the exemption pathways, such as MFN deals or domestic production commitments, have been primarily utilized by big players, leaving smaller companies to bear the full tariff burden.

The lack of transparency is prompting smaller biotechs to seek clarification from the government on how to apply for relief.