New Tariffs Imposed on Pharmaceuticals and Metals
On Thursday, President Donald Trump announced new tariffs on pharmaceuticals, steel, aluminum, and copper, marking a year since his initial tariffs on global trade on “Emancipation Day.” The new measures specify that patented pharmaceutical ingredients will face a 100 percent tariff, with a 50 percent tariff applied to products primarily made of aluminum, steel, or copper. These tariffs fall under Article 232 duties, as noted in a White House fact sheet.
The implementation timeline for these tariffs is set for 120 days for large businesses and 180 days for smaller firms. Companies that sign a most-favored-nation (MFN) agreement and maintain domestic agreements with the U.S. will be exempt from tariffs until the next presidential term begins.
According to the fact sheet, a 20% tariff will be imposed on firms that enter into onshoring agreements solely with the Department of Commerce, which, along with Health and Human Services (HHS), offers pathways for these agreements.
Medicines from specific countries will incur a 15% tariff, while those from the UK will benefit from lower rates. For instance, if medications are sourced from the European Union, Japan, South Korea, Switzerland, or Liechtenstein, they will face this customs duty. The fact sheet also mentions that products manufactured in the UK will have reduced tariffs due to a new agreement.
The introduction of these drug tariffs follows a Section 232 investigation conducted by Secretary of Commerce Howard Lutnick.
Additionally, President Trump’s declaration on steel, aluminum, and copper outlines how these tariffs will reflect the real values of imported products, aiming to counteract artificially low foreign pricing. The declaration imposes a 50 percent tariff on products that are predominantly made of these metals, while derivative products containing substantial amounts of them will face a 25 percent tariff.
To support ongoing industrial infrastructure developments in the U.S., certain metal-intensive equipment will incur a 15% levy until 2027. However, products made abroad that utilize U.S. steel, aluminum, and copper only will attract a lower 10% tariff. Items containing 15% or less of these metals are exempt from the Section 232 tariffs.
The implementation of these tariffs comes just one day after President Trump initialed his first global tariffs in the Rose Garden on April 2, 2025, coinciding with Emancipation Day.
