Trump imposes 100% tariffs on certain imported branded drugs and revises tariffs on steel, aluminum, and copper

President Trump has imposed 100% tariffs on certain imported branded pharmaceuticals and revised tariffs on steel, aluminum and copper. The pharmaceutical move is viewed as partly offsetting revenue losses after the Supreme Court ruled against the countervailing tariff policy in February, while business groups warned the changes could raise costs amid higher energy prices linked to the conflict with Iran and added pressure on consumers.

Pharmaceutical tariffs: 100% for some branded medicines, with phased deadlines

Under a national-security investigation into pharmaceutical imports, Trump said foreign drugmakers selling patented medicines must sign agreements with the US government to lower drug prices and commit to shifting production to the United States. A US official said a company would be exempt from tariffs only if both conditions are met.

The tariff rate depends on compliance:

• If only part of production is shifted to the US, the tariff would be 20%.
• If neither condition is met, the tariff would be 100%.

The new tariffs do not apply uniformly across all countries. Under existing trade agreements, branded drugs from the European Union, Japan, South Korea and Switzerland will face a maximum tariff of 15%.

The US and the UK have also completed a separate pharmaceutical agreement. Under that agreement, medicines produced in Britain will be tariff-free for at least three years as Britain gradually expands manufacturing in the US.

A US official said major pharmaceutical companies will have 120 days to meet the new requirements before the 100% tariff takes effect, while smaller producers will have 180 days.

Metal tariffs: reduced rates for many processed products, new pricing basis

On April 2, Trump also issued a separate statement on metal tariffs, cutting tariffs by half to 25% for many processed products made from steel, aluminum and copper, while fully exempting items with very low metal content. However, a 50% tariff remains for steel, aluminum and copper imported as raw materials.

One notable change is how tariffs will be calculated. According to a US official, tariffs will be based on the selling price of the metal in the US market rather than the import value declared by firms. The administration said declared prices have long been below actual market prices.

The administration said the changes are intended to simplify a tariff framework that it described as overly complex for importers, who must determine metal value across thousands of items, ranging from tractor components to stainless steel sinks and rail equipment.

Under the plan, products with metal content below 15% by weight will be exempt from tariffs—for example, a toothpaste case with only a small steel blade.

The White House said tariffs on certain industrial equipment and highly metal-intensive grid equipment would fall from 50% to 15% through the end of 2027 to support expanding domestic industrial capacity and accelerate data-center construction.

The metal-tariff changes take effect at 12:01 a.m. on Monday, April 6, Eastern Time.

Context: Supreme Court ruling on countervailing tariffs and refund timeline

The changes come exactly one year after April 2, 2025, when Trump launched the countervailing tariff policy he called “Liberation Day,” imposing tariffs on most partners, including some remote islands. Countervailing tariffs were enacted under the International Emergency Economic Powers Act (IEEPA) and triggered retaliation, negotiations with multiple countries, and lawsuits by importers.

By February 2026, the Supreme Court ruled that the president had no authority to impose tariffs under IEEPA. A lower court then required US Customs and Border Protection (CBP) to design a plan to refund roughly $166 billion of countervailing tariffs collected.

On April 2, USTR Jamieson Greer defended the countervailing tariffs, describing them as a “reset” of a distorted global trading system. He said the tariffs spurred domestic plant construction and forced trading partners to concede more to US exports.

“The best is yet to come, as the tariff program continues to spur domestic production, raise workers’ incomes, and strengthen key US supply chains,” Greer said.

Business reaction: cost concerns from the US Chamber of Commerce; support from steel industry

Separately, the US Chamber of Commerce said that a year after the tariffs were increased, prices in the US rose and cost pressures on many businesses mounted. The chamber warned the announced measures could push prices for goods and services higher.

“An entirely new and complex tariff regime for pharmaceuticals will raise healthcare costs for American families,” Neil Bradley, Chief Policy Officer of the US Chamber of Commerce, said on April 2.

Bradley said changes to the metal tariffs would also raise consumer prices and add pressure to manufacturing, construction and energy—sectors already facing higher input costs and prolonged supply-chain disruptions.

Philip Bell, President of the Steel Producers Association, welcomed the administration’s “reasonable” adjustments to the derived products list and the pricing method. He said the changes would help apply tariffs more accurately and support the steel industry’s recovery without undermining macroeconomic goals.