President Trump imposes 100% tariff on foreign pharmaceuticals and reshapes metal duties to push for US manufacturing, with exemptions for some allies.
WASHINGTON: President Donald Trump has ordered new tariffs on certain foreign-made medicines and overhauled existing duties on metals.
The moves intensify his push to reshape US trade policy and compel manufacturing to return to America.
One order imposes a 100% tariff on patented pharmaceuticals manufactured abroad. This steep duty will take effect unless countries strike new trade deals or companies commit to building plants in the United States.
Large companies have 120 days to commit to “reshoring plans” before the tariff applies. Smaller firms are granted a 180-day buffer period.
“We expect the lion’s share of the world’s patented pharmaceuticals to be building in America,” a senior US official told reporters. Companies that commit to building US manufacturing plants will face a reduced 20% tariff instead.
The European Union, Japan, South Korea and Switzerland are excluded from the 100% rate due to existing trade deals. They will face a 15% pharmaceutical duty.
Britain has secured a separate three-year deal allowing UK-made medicines tariff-free access to the US market. Drug companies that agree to “Most Favored Nation” pricing and build US plants can also gain exemptions.
Generic pharmaceutical products are not subject to the new tariffs. This exemption will be reassessed in one year, according to a White House fact sheet.
The second order reshapes existing 50% tariffs on steel, aluminium and copper imports. It mandates that importers pay duties based on prices faced by American buyers, not manipulated import values.
“It’s a simplification and a fairness issue,” a senior official said, alleging foreign countries were “artificially manipulating” metals prices to lower tariff payments. The new calculation takes effect early next week.
The proclamation also changes how finished products containing these metals are taxed. Goods made with over 15% steel, aluminium or copper will face a 25% tariff on their full value, not just the metal content.
Senior officials insisted the new measures should not impact consumer affordability. “These will not have impact on the price of the good on the shelf,” one official stated.
The actions coincide with the anniversary of what Trump dubbed “Liberation Day”. That was when he announced widespread tariffs last year, aiming to spark a rebirth of American industry.
Although the Supreme Court struck down those global tariffs in February, Trump has used different authorities to reinstate duties. Critics argue the promised influx of jobs and investment has largely not materialised.