A year after the Liberation Day tariffs, US President Donald Trump has imposed another set of duties, this time targeting drugs and key metals. The move is aimed at incentivizing companies to manufacture within the US. The new measures, which impose tariffs on steel, aluminum and copper, will strengthen efforts to boost domestic production.The announcements come a year after Trump imposed sweeping tariffs on several trading partners under “Liberation Day” on April 2, a move that disrupted global supply chains and financial markets. Although the Supreme Court struck down those measures earlier this year, the administration has continued to pursue similar policies through alternative mechanisms.Here’s what the order says:
100% tariff on pharma items
The latest order on pharmaceuticals imposes a hefty duty of 100% on patented drugs produced outside the United States. The measure is designed to encourage companies to shift production domestically, unless countries negotiate trade agreements with Washington or companies commit to setting up manufacturing facilities in the US.Officials said larger drug companies have 120 days to submit a “resettlement plan,” while smaller companies have 180 days before the tariffs go into effect. Companies that have committed to building the plants, which are expected to be completed by the end of Trump’s second presidency, will instead face a reduced tariff of 20%.A senior US official said, “We expect that the vast majority of the world’s patented pharmaceuticals will be made in the US.” Commenting on the countries covered under the new move, which will also include India, a White House official said these measures will reduce America’s dependence on foreign countries for essential medicines. “100% tariff is on patented products. Any patented drug imported from India by companies that do not get approval for the reshoring scheme will be subject to 100% tariff,” ANI quoted the official as saying.exempt nationsSome partners have been given discounts and reduced rates. These include the EU, Japan, South Korea and Switzerland, which would have faced 15% tariffs under prior agreements, while Britain has been assured three years of tariff-free access to its medicines as part of a broader deal, according to the Office of the US Trade Representative.Additional relief is available to companies that enter into “most favored nation” pricing arrangements with the Administration while investing in U.S.-based manufacturing. Generic medicines are not currently under the tariff scope, although this will be reviewed after a year.
Metals also on radar
Along with the pharmaceutical measures, Trump also signed a proclamation reshaping tariffs on steel, aluminum and copper, citing national security concerns and the need to strengthen domestic industry.Under the revised framework, tariffs will be calculated based on the full value of imported products rather than a lower foreign price benchmark. Products made almost entirely of these metals will attract a flat 50% tariff, while derivative goods in substantial quantities will attract a 25% duty on their full value. Some industrial and electrical grid equipment would be taxed at 15% through 2027, and goods produced overseas using entirely American metals would face a lower 10% tariff. Goods with minimum metal content, 15% or less, will no longer be subject to these duties.The changes will take effect at 12:01 a.m. Eastern Time on Monday.A senior administration official said the overhaul addresses concerns that “foreign countries were artificially manipulating prices” to reduce tariff payments. The revised structure is aimed at simplifying the system and ensuring fair enforcement, the official said.“This is an issue of simplification and fairness,” the official said.Despite concerns about rising costs ahead of midterm elections, the administration said the measures would not affect household spending. “These will have no impact on the prices of the goods on the shelves,” the official stressed.The White House said the steps are part of a broader effort to boost domestic production of strategic materials and strengthen economic and national security. Officials highlighted ongoing expansion in U.S. metals industries, including investments in new steelmaking capacity and aluminum and copper production, as evidence of the impact of current tariff policies.The latest proclamation builds on earlier actions under the Section 232 program, which has been used to impose and expand tariffs on major industrial imports. According to the administration, these measures have supported domestic producers, encouraged investment, and helped create jobs, while ensuring that American industries can compete more effectively.
