WASHINGTON, D.C.: A year after unveiling sweeping "Liberation Day" tariffs, U.S. President Donald Trump has introduced a new set of trade measures targeting pharmaceutical imports while easing some duties on metals, marking a shift in his administration's tariff strategy.
On April 2, Trump ordered tariffs of up to 100 percent on certain branded pharmaceutical imports, alongside changes to steel, aluminum, and copper duties, as the administration looks to rebuild trade levies struck down earlier this year by the U.S. Supreme Court.
The pharmaceutical tariffs are intended to force foreign drugmakers to cut prices and expand manufacturing in the United States. Under the policy, companies must agree to both conditions to avoid tariffs entirely. Those that shift some production to the U.S. but do not comply with pricing demands will face a 20 percent tariff, while firms that do neither will be subject to a 100 percent duty.
The tariffs will not apply uniformly across all countries. Imports from the European Union, Japan, South Korea, and Switzerland will face a capped rate of 15 percent under existing trade agreements. The U.S. and Britain have also finalized a separate deal ensuring zero tariffs on British-made pharmaceuticals for at least three years.
According to an administration official, large pharmaceutical companies will have 120 days to comply before the highest tariffs take effect, while smaller producers will have 180 days.
Alongside the pharmaceutical measures, Trump signed a separate proclamation revising tariffs on metals. Duties on many derivative products made from steel, aluminum, and copper will be cut to 25 percent, while tariffs will be removed entirely for goods with minimal metal content.
However, a 50 percent duty on core imports of these metals will remain in place. The administration will now apply this rate to the U.S. sales price of the metals rather than their declared import value, which officials said had often been understated.
The overhaul is intended to simplify what had become a complex system for determining tariffs on products ranging from machinery parts to household goods. Items with less than 15 percent metal content, such as products with small steel components, will no longer be subject to these duties.
The White House also said tariffs on certain metal-intensive industrial and power-grid equipment will be reduced to 15 percent from 50 percent through 2027 to support infrastructure and data center expansion. The changes to metals tariffs are set to take effect just after midnight on April 6.
The announcement comes exactly one year after Trump's "Liberation Day" tariffs, which imposed duties of 10 percent to 50 percent on imports from a wide range of countries. Those measures triggered retaliatory actions from trading partners and a series of legal challenges.
In February, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were unlawful, leading to a lower court order requiring refunds of roughly US$166 billion in collected duties.
U.S. Trade Representative Jamieson Greer defended the earlier tariffs as a necessary reset of global trade, saying they had encouraged domestic investment and secured concessions from trading partners.
"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 said in a statement.
Business groups, however, warned that the latest measures could increase costs. "A new, complex tariff scheme on pharmaceuticals will raise healthcare costs for American families," said Neil Bradley, policy chief at the U.S. Chamber of Commerce.
He added that changes to metals tariffs could further strain industries already facing high input costs and supply chain challenges.
Still, some industry representatives welcomed the adjustments. Steel Manufacturers Association president Philip Bell said the revisions would better target tariffs to support domestic production without broader economic disruption.
