Tariffs treated as permanent

U.S. companies are no longer treating tariffs as a short-term shock; they are building them into budgets, sourcing plans, and factory decisions. (pwc.com) PwC said 86% of 633 U.S. executives surveyed from March 12 to March 20 now treat tariffs as a “permanent planning assumption.” The respondents included chief executives, chief financial officers, chief operating officers, technology leaders, risk leaders, tax leaders, and corporate board members. (pwc.com) PwC published the survey on April 13, 2026, after more than a year of what it called “rapid policy shifts, economic uncertainty, and operational disruption.” In the same report, 35% of executives said they had adjusted trade strategy since 2025, and 66% said they were ahead of competitors on supply-chain resilience. (pwc.com) The legal backdrop shifted again on April 2, when President Donald Trump issued a Section 232 proclamation on pharmaceuticals. Section 232 is the part of U.S. trade law that lets a president restrict imports after a Commerce Department investigation finds a national security threat. (whitehouse.gov) The White House said the new pharmaceutical action imposes a 100% tariff on patented drugs and their ingredients, with the duties taking effect in 120 days for certain large companies and 180 days for smaller companies. The administration set lower rates for some trade-deal partners, including 15% for products from the European Union, Japan, Korea, Switzerland, and Liechtenstein. (whitehouse.gov) The proclamation says the Commerce Department found imported pharmaceuticals and active pharmaceutical ingredients threatened U.S. national security. It cited Food and Drug Administration data showing that, as of 2025, about 53% of patented pharmaceutical products distributed in the United States were produced abroad, while only 15% of patented active ingredients by volume were made domestically for the U.S. market. (whitehouse.gov) The White House said generic drugs, biosimilars, and related ingredients are not covered “at this time,” and some orphan drugs, animal-health drugs, and urgent public-health products can be exempt. Companies that sign both onshoring agreements with the Commerce Department and Most Favored Nation pricing deals with the Department of Health and Human Services can qualify for a 0% tariff through January 20, 2029. (whitehouse.gov) Business advisers say that mix of high headline tariffs, carve-outs, and compliance conditions is pushing companies to redesign supply chains instead of waiting for courts or elections to reverse policy. McDermott Will & Schulte said importers now need to review product classifications, sourcing, transfer pricing, and exemption eligibility before the new pharmaceutical duties begin. (mcdermottlaw.com) Tariffs have also survived changes in administrations, which helps explain why executives are planning for persistence rather than relief. PwC’s January 2026 global chief executive survey said tariff exposure varied sharply by region, with 35% of chief executives in Mexico and 28% in mainland China saying their organizations were highly or extremely exposed to significant tariff-related financial loss over the next 12 months. (pwc.com) The result is that tariffs are being treated less like a temporary tax and more like a fixed cost of doing business in the United States. The newest pharmaceutical action gives companies a deadline, a tariff schedule, and a fresh reason to assume the trade barrier stays put. (whitehouse.gov)