WASHINGTON – President Donald Trump has implemented sweeping new tariffs on pharmaceutical imports and modified existing metal duties as his administration moves forward from last year’s failed global tariff strategy.
The president announced 100% tariffs on specific branded drug imports Thursday, while simultaneously restructuring duties on steel, aluminum and copper products. These measures arrive precisely one year after Trump’s previous comprehensive tariff program collapsed.
The pharmaceutical tariffs stem from a national security review of drug imports. Under the new policy, foreign manufacturers of patented medications must negotiate pricing agreements with the federal government and pledge to relocate production to American soil to completely avoid tariffs.
Companies that only relocate some manufacturing operations to the United States will face 20% tariffs, while those refusing both requirements will encounter the full 100% duty rate, according to administration officials.
However, the pharmaceutical tariffs include exceptions. Trade agreements with the European Union, Japan, South Korea and Switzerland will limit branded drug tariffs to 15%. Additionally, the United States and Britain reached a separate agreement guaranteeing zero tariffs on British-manufactured pharmaceuticals for three years minimum while Britain establishes U.S. production facilities.
Large pharmaceutical companies will have 120 days to meet compliance requirements before facing the 100% tariff rates, while smaller manufacturers receive 180 days, administration officials stated.
Regarding metals, Trump’s separate proclamation reduced tariff rates to 25% on numerous derivative products containing steel, aluminum and copper, while eliminating duties entirely on items with minimal metal content.
The 50% duty on raw steel, aluminum and copper imports remains unchanged. However, the administration will now calculate this rate based on U.S. sales prices rather than declared import values, which officials claim were frequently understated.
These metal tariff modifications aim to streamline what officials described as an overly complex system that created difficulties for importers trying to assess metal content values across thousands of products, ranging from farm equipment components to kitchen sinks and railway materials.
Items containing less than 15% metal content by weight, such as dental floss dispensers with small steel cutting blades, will no longer face these tariffs. The administration also announced reduced duties of 15% instead of 50% on certain metal-heavy industrial and electrical grid equipment through 2027 to support infrastructure and data center construction.
The metal tariff changes take effect Monday after midnight, according to the order.
These announcements coincide with the first anniversary of Trump’s “Liberation Day” declaration of “reciprocal tariffs” ranging from 10% to 50% on imports from all trading partners, including some uninhabited territories. Those tariffs, implemented under the International Emergency Economic Powers Act, triggered months of Chinese retaliation, international trade negotiations and legal challenges from importers.
The Supreme Court ruled the IEEPA-based tariffs illegal in February, leading to a lower court directive requiring U.S. Customs and Border Protection to develop a refund plan for approximately $166 billion in collected tariffs.
U.S. Trade Representative Jamieson Greer defended the IEEPA tariffs Thursday as a “reset button” for a dysfunctional global trading system. Greer credited the tariffs with encouraging companies to construct new American factories and compelling trading partners to offer concessions for U.S. exports.
“The best is yet to come as President Trump’s tariff program incentivizes domestic production, raises workers’ wages, and reinforces our critical supply chains,” Greer stated.
The U.S. Chamber of Commerce criticized the new measures, arguing that Trump’s higher tariffs over the past year have already increased prices and created cost pressures across multiple industries. The organization warned the latest announcements could trigger additional price increases.
“A new, complex tariff scheme on pharmaceuticals will raise healthcare costs for American families,” said Neil Bradley, the Chamber’s policy chief.
“Changes to metals tariffs will likewise raise prices for consumers and add pressure to manufacturing, construction, and energy — industries that are already reeling from higher input costs and ongoing supply-chain challenges,” Bradley added.
However, Steel Manufacturers Association president Philip Bell commended the administration for “right-sizing” the metals derivatives list and updating valuation methods to ensure tariffs “remain precisely targeted to support the revitalization of the American steel industry without undermining broader economic goals.”
