Trump Unveils New Drug And Metal Tariffs
Trump Unveils New Drug And Metal Tariffs
U.S. President Donald Trump has announced a new set of tariff changes targeting imported patented medicines and a wide range of metal products, marking another major shift in Washington’s trade policy. The measures are aimed at pushing more manufacturing into the United States while also changing how duties are calculated on steel, aluminium and copper-related imports.
Trump Pharma Tariffs Target Imported Drugs
Under the new rules, foreign manufacturers of patented drugs will face pressure to lower prescription prices and move production to the United States. Companies that fully comply can avoid tariffs, while those that only partly shift manufacturing may face a 20% duty. Firms that do not meet either condition could be hit with tariffs of up to 100%. Some trade partners, including the European Union, Japan, South Korea and Switzerland, are expected to face capped rates on branded drug imports, while British-made pharmaceuticals are set to receive temporary relief under a separate arrangement.
Steel Aluminium Copper Tariff Rules Revised
Trump has also revised duties on many steel, aluminium and copper derivative products. Tariffs on several processed or derivative items have been reduced to 25%, while core commodity imports of these metals will still face a 50% duty. Products with very low metal content will be exempt, and certain industrial and power-grid equipment will get lower rates through 2027 to support manufacturing and data centre expansion.
US Tariff Calculation Method Changed
The administration is also changing the method used to calculate metal tariffs. Instead of relying on declared import value, duties will now be based on the U.S. sales price of the metal content, a move officials say is meant to curb under-reporting. Business groups have warned that the new pharma and metals measures could increase costs for healthcare, construction, manufacturing and energy sectors already dealing with higher input prices.
