Trump imposes 100% tariff on patented pharmaceuticals, 50% on strategic metals

US President Donald Trump decided to implement new tariffs on imported pharmaceutical products and critical metals to strengthen national security and domestic supply chains. The US administration implemented a 100% tariff on imported patented pharmaceutical products and ingredients, the White House stated on Thursday.

Pharmaceutical tariffs

This tariff rate dropped to 15% for pharmaceutical imports originating from the EU, Japan, South Korea, Switzerland and Liechtenstein. Pharmaceutical companies faced a 20% tariff if they only signed domestic manufacturing agreements with the government. Officials exempted generic pharmaceuticals, biosimilars and orphan drugs from these immediate trade measures.

Metal tariffs

In a parallel move, the administration introduced a flat 50% tariff on articles made entirely or almost entirely of steel, aluminum and copper. Derivative articles substantially containing these three strategic metals received a flat 25% import penalty. The government applied a temporary 15% tariff on specific metal-intensive industrial and electrical grid equipment until 2027.

Exemptions

Foreign-manufactured goods manufactured exclusively with American metals qualified for a reduced 10% tariff rate. Products containing 15% or less steel, aluminum or copper completely escaped these new trade tariffs.

Economic context

The tariffs come amid ongoing global supply chain disruptions from the Middle East conflict and represent Trump's continued push to reshore critical manufacturing to the United States. The pharmaceutical measures particularly target foreign drug manufacturers while incentivizing domestic production agreements.