Trump imposes 100% tariffs on certain imported pharmaceuticals and halves tariffs on steel, aluminum and copper-containing products

President Donald Trump has announced 100% tariffs on certain imported pharmaceuticals and a 50% reduction in tariffs on products containing steel, aluminum, and copper. The tariff adjustment order was announced on April 2, aiming to offset tariffs invoked under the International Emergency Economic Powers Act (IEEPA) that were struck down by the U.S. Supreme Court in February.

Pharmaceutical tariffs: compliance conditions and timelines

In the conclusion of a national security investigation into imported pharmaceuticals, Trump said drug manufacturers with foreign patents must sign agreements with the U.S. government to lower prescription drug prices and commit to moving production to the United States. The administration said both conditions must be met to avoid tariffs entirely.

If only part of production is moved to the U.S., the companies would face a 20% tariff. Manufacturers that do not implement both measures would face 100% tariffs.

Major drug companies will have 120 days to comply before the 100% tariff takes effect, while small manufacturers have 180 days.

Exceptions and trade-agreement caps

The policy includes exceptions. Tariffs on branded drugs will be capped at 15% under trade agreements with the European Union, Japan, South Korea, and Switzerland.

The U.S. and the U.K. have also completed a drug tariff agreement that ensures 0% tariffs for drugs manufactured in the U.K. for at least three years, while the U.K. expands production in the U.S.

Potential price impact

Neil Bradley, Policy Director at the U.S. Chamber of Commerce, warned that the new drug tariff policy could continue to push up drug prices. He said a “new, complex tariff regime for pharmaceuticals” would raise healthcare costs for American families.

Metals tariffs: reduced rates, exemptions, and application method

In a separate executive order, Trump halved tariffs on many products containing steel, aluminum, and copper to 25%, effective April 6. Products with metal content below 15% by weight are fully exempt.

Tariffs on basic steel, aluminum, and copper remain at 50%.

The administration said it will apply these tariffs based on U.S. sale prices rather than declared import values, which it said are often lower.

Rationale: simplifying metal-content determinations

The administration said the metals tariff revisions are intended to simplify how importers determine metal content across thousands of products, ranging from tractor parts to stainless steel sinks, rail equipment, and other goods.

Under the new rules, products with metal content below 15% by weight—for example, dental floss boxes with small steel blades—would no longer be taxed.

Industrial equipment and power-grid components

The White House also said it would reduce tariffs on some industrial equipment and power-grid components that use significant amounts of metal to 15% from 50% by 2027, to support expanding domestic manufacturing and data centers.

Industry reaction

Philip Bell, chairman of the Steel Producers Association, welcomed the administration’s “reasonable adjustments” to the metal-containing product list and the updated pricing methodology. He said the approach is intended to ensure tariffs are applied accurately to support reviving the U.S. steel industry without undermining broader economic goals.

Legal and policy timeline

The changes to tariffs on pharmaceuticals and metals were issued exactly one year after the administration’s “Liberation Day” declaration, when it announced tariffs of 10% to 50% on imports from all countries.

In February, the Supreme Court ruled that tariffs based on IEEPA were illegal. U.S. Customs and Border Protection planned to refund about $166 billion in tariffs collected over a year.

Administration’s framing

On April 2, U.S. Trade Representative Jamieson Greer praised the tariffs as a “reset button” for the disrupted global trading system. He argued the move has encouraged companies to build new plants in the U.S. and pushed trading partners to concede on U.S. exports, adding: “The best is yet to come.”

Reported by Phiên An (via Reuters).