US tariffs on pharmaceuticals forecast…K-bio closely monitors

President Trump "25% increase in reciprocal tariffs on pharmaceuticals"

Maximum 15% was the deal from last year; however, changes are likely

Korean pharmaceutical companies, including Celltrion and Samsung Biologics, have established countermeasures by acquiring U.S.-based plants

U.S. President Donald Trump showed his intent to impose a 25% tariff on pharmaceuticals. Korea's major pharmaceutical companies devised countermeasures by acquiring U.S.-based manufacturing plants. The Korean pharmaceutical industry is also closely watching the continuously changing imposition of tariffs.

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On January 26, 2026, President Trump posted on Truth Social, "The South Korean National Assembly has failed to implement previously agreed trade measures," adding, "An immediate increase in tariffs on Korean woods, pharmaceuticals, and all other reciprocal goods from 15% to 25%.

In October 2025, during the APEC summit in Gyeongju, Korea and the U.S. reached a Most Favored Nation agreement for pharmaceuticals. This deal detailed that tariffs on South Korean medicines would not exceed 15%.

According to the details of the agreement disclosed last month, the White House released a South Korea-U.S. Summit Joint Fact Sheet (JFS) that includes an agreement to ensure that tariffs on South Korean pharmaceutical products do not exceed 15%. It was finalized that in any case where tariffs are imposed on pharmaceuticals, the rate will not exceed 15%. For generics, it was decided to apply zero tariffs.

The KoreaBIO Association stated, "While it was agreed in the Korea-U.S. trade agreement to apply a maximum of 15% if Section 232 tariffs are applied to pharmaceuticals, it will be difficult to rule out the possibility of a tariff increase to 25% through future amendments to the trade agreement."

President Trump has also mentioned the possibility of imposing 100% tariffs on branded pharmaceuticals since October of last year.

Through Truth Social on September 25 last year, President Trump stated, "Starting the 1st of next month, a 100% tariff will be imposed on all branded and patented pharmaceuticals from companies that are not building pharmaceutical production plants within the United States." adding, "'IS BUILDING' means a state where groundbreaking has occurred or construction is underway," and "In cases where construction has started, no tariffs will be imposed on the corresponding pharmaceuticals." However, no official tariff measures regarding pharmaceuticals have been announced to date.

Korean pharmaceutical and biotech companies with high export volumes to the U.S. are in a state of high alert regarding pharmaceutical tariff rates. Domestic pharmaceutical and biotech companies without local plants in the U.S. have no choice but to closely watch the trend, as U.S. pharmaceutical tariff rates can impact their market penetration.

However, it has been suggested that even if tariff rates rise, the direct blow will not be significant for Celltrion and Samsung Biologics, which export the most pharmaceuticals from Korea to the U.S., as they have established countermeasures by acquiring local plants.

Celltrion has shown the most preemptive movement in preparation for U.S. tariffs. In September last year, Celltrion's subsidiary, Celltrion USA, signed a formal contract to acquire a biopharmaceutical production plant located in Branchburg, New Jersey, from ImClone Systems Holdings, a subsidiary of Eli Lilly. The acquisition amount is approximately $330 million (about KRW 460 billion). Celltrion received approval from Irish competition authorities in October last year and finally completed the acquisition process in November after the finalization of the business combination review by the U.S. Federal Trade Commission (FTC).

Celltrion USA production facility opening ceremony held in June (from left: Kee Woo-sung, Vice Chairman of Celltrion; Todd Winge, CEO of Celltrion Branchburg; Park Kyung-ok, Senior Vice Chairman of Celltrion Holdings; Seo Jung-jin, Chairman of Celltrion Group; U.S. Senator Andy Kim of New Jersey; U.S. Representative Thomas Kean Jr. of New Jersey; Thomas Young, Mayor of Branchburg Township; Seo Joon-seok, Head of Celltrion North America Headquarters).

The U.S. production facility acquired by Celltrion is a large-scale campus equipped with a total of four buildings, including production facilities, logistics warehouses, a technical support building, and an operation building on a site of approximately 148,500㎡, capable of producing about 66,000 liters of drug substance (DS). Celltrion plans to enter into an immediate expansion process and invest an additional KRW 700 billion to expand production capacity to a total of 132,000 liters.

A Celltrion official explained, "By securing the production facility in Branchburg, New Jersey, we have prepared a fundamental solution regarding tariffs and have structurally escaped from all risks.

Samsung Biologics signed a contract last December with GlaxoSmithKline (GSK) to acquire the Human Genome Sciences (HGS) biopharmaceutical production facility located in Rockville, Maryland. This involves an investment of $280 million (approximately KRW 410 billion) by Samsung Biologics America, the U.S. subsidiary of Samsung Biologics, to acquire the plant. The asset acquisition process is scheduled to be completed within the first quarter of this year.

​View of the Human Genome Sciences biopharmaceutical production facility located in Rockville, Maryland. 

The Rockville production facility is a drug substance production plant with a total capacity of 60,000 liters located in the center of the Maryland bio-cluster, consisting of two manufacturing buildings. The facility is equipped with infrastructure capable of supporting the production of antibody drugs at various scales, from clinical stages to commercial production.

This is Samsung Biologics' first acquisition of an overseas plant. Samsung Biologics operates five plants in Songdo, Incheon. All five plants were constructed using internally procured funds.

It appears that biotech companies with large U.S. export volumes have completed preparations for tariff risks by investing a total of over KRW 1 trillion to acquire local plants.

According to the Ministry of Food and Drug Safety, South Korea's pharmaceutical export volume to the U.S. in 2024 was $1.49117 billion (approximately KRW 2 trillion), accounting for 16.1% of the $9.28987 billion total export volume of domestically produced pharmaceuticals. Among pharmaceutical exports to the U.S. in 2024, finished pharmaceutical products accounted for $1.29899 billion, or 87.1%, while active pharmaceutical ingredients (API) were only $192.19 million, or 16.9%. Samsung Biologics and Celltrion in the U.S. export of domestically produced pharmaceuticals occupy the most.

For Samsung Biologics, U.S. regional sales accounted for KRW 1.1741 trillion, or 25.8% of its KRW 4.5473 trillion total revenue in 2024. Samsung Biologics' U.S. revenue share recorded 28.5% and 26.3% in 2022 and 2023, respectively. Samsung Biologics calculates regional revenue based on the location of its CDMO clients. Samsung Biologics' cumulative U.S. revenue for the third quarter reached KRW 1.6482 trillion, surpassing last year's export volume. U.S. sales accounted for 38.8% of Samsung Biologics' KRW 4.2484 trillion cumulative revenue through the third quarter.   

For Celltrion, biopharmaceutical sales in the North American market reached KRW 1.0453 trillion in 2024. Celltrion's North American market sales decreased 11.3% from KRW 709.5 billion in 2022 to KRW 629.2 billion in 2023, but increased by 66.1% in 2024 compared to the previous year, surpassing KRW 1 trillion for the first time.