Kamal Ghorui
A year after the Liberation Day tariffs, US President Donald Trump has rolled out another set of duties, this time targeting medicines and key metals. The move is aimed towards pushing companies to manufacture within the US. The new measures impose tariffs on steel, aluminium and copper, strengthening efforts to boost domestic production.The announcements come a year after Trump rolled out sweeping tariffs on multiple trading partners under what he had termed “Liberation Day” on April 2, a move that had disrupted global supply chains and financial markets. Although those measures were struck down by the Supreme Court earlier this year, the administration has continued to pursue similar policies through alternate mechanisms.Here’s what the order says:
100% tariffs on pharma goods
The latest order on pharmaceuticals imposes a steep 100% tariff on patented drugs produced outside the United States. The measure is designed to encourage companies to relocate production domestically, unless countries negotiate trade agreements with Washington or firms commit to setting up manufacturing facilities in the US.Officials said large pharmaceutical companies have 120 days to present “reshoring plans”, while smaller firms have 180 days before the tariff comes into force. Companies that commit to building plants, expected to be completed by the end of Trump’s second presidency, will instead face a reduced tariff of 20%.“We expect the lion’s share of the world’s patented pharmaceuticals to be building in America,” a senior US official said. Commenting on the countries covered under the new move, which would also include India, a White House executive said that the measures will reduce US’s dependence on foreign nations for essential medicines. “100% tariff is on patented products. Any patented drug imports from India made by companies that do not get approved for a reshoring plan will be subject to a 100% tariff,” ANI cited the official.Nations with exemptionsSome partners have been granted exemptions and reduced rates. These include the European Union, Japan, South Korea and Switzerland, which will face a 15% tariff under prior agreements, while Britain has secured tariff-free access for its medicines for three years as part of a broader deal, according to the US Trade Representative’s office.Additional relief is available for companies that enter “Most Favored Nation” pricing arrangements with the administration while also investing in US-based manufacturing. Generic medicines are not currently covered by the tariffs, though this will be reviewed after a year.
Metals on the radar too
Alongside the pharmaceutical measures, Trump also signed a proclamation reshaping tariffs on steel, aluminium and copper, citing national security concerns and the need to strengthen domestic industry.Under the revised framework, tariffs will be calculated based on the full value of imported products rather than lower foreign price benchmarks. Products made almost entirely of these metals will attract a flat 50% tariff, while derivative goods containing substantial amounts will face a 25% duty on their full value. Certain industrial and electrical grid equipment will be taxed at 15% through 2027, and goods produced abroad using entirely American metals will face a lower 10% tariff. Items with minimal metal content, 15% or less, will no longer be subject to these duties.The changes will take effect from 12:01am Eastern Time on Monday.A senior administration official said the overhaul addresses concerns that “foreign countries were artificially manipulating” prices to reduce tariff payments. The revised structure, the official added, is intended to simplify the system and ensure fairer enforcement.“It’s a simplification and a fairness issue,” the official said.Despite concerns about rising costs ahead of midterm elections, the administration maintained that the measures would not affect household expenses. “These will not have impact on the price of the good on the shelf,” the official insisted.The White House said that the steps form part of a broader push to bolster domestic production of strategic materials and reinforce economic and national security. Officials highlighted ongoing expansion in US metals industries, including new steelmaking capacity and investments in aluminium and copper production, as evidence of the impact of existing tariff policies.The latest proclamation builds on earlier actions under the Section 232 programme, which has been used to impose and expand tariffs on key industrial imports. According to the administration, these measures have supported domestic producers, encouraged investment and helped create jobs, while ensuring that American industries can compete more effectively.
