Another round of Liberation Day tariffs? Trump imposes 100% tariff on patented drugs and reduces steel, aluminum tariffs

A year after the Liberation Day tariffs, U.S. President Donald Trump introduced another set of tariffs, this time targeting pharmaceuticals and critical metals. The move is aimed at promoting companies to produce within the United States. The new measures impose tariffs on steel, aluminum and copper, increasing efforts to boost domestic production.The news comes a year after Trump imposed sweeping tariffs on multiple trading partners on April 2, a so-called “Liberation Day” that disrupted global supply chains and financial markets. Although these measures were struck down by the Supreme Court earlier this year, the government continues to pursue similar policies through alternative mechanisms.The command says this:

100% tariff on drugs

The latest drug order imposes steep 100% tariffs on patented drugs produced outside the United States. The measure is intended to encourage companies to move production domestically unless countries negotiate trade deals with Washington or companies commit to setting up manufacturing facilities in the United States.Officials said large pharmaceutical companies have 120 days to come up with a “reshoring plan,” while smaller companies have 180 days before the tariffs take effect. Companies that pledge to build factories that are expected to be completed before the end of Trump’s second presidential term will face a 20% tariff reduction.“We expect that most of the world’s patented medicines will be produced in the United States,” a senior U.S. official said. Commenting on the countries covered by the new measures, which also include India, a White House executive said the measures would reduce U.S. dependence on foreign countries for essential medicines. “The 100 per cent duty is on patented products. Any patented medicine imported from India by a company that does not get approval under the reshoring scheme will be levied 100 per cent duty,” ANI quoted the official as saying.countries with exemptionsSome partners have received exemptions and reduced tax rates. These include the European Union, Japan, South Korea and Switzerland, which would have faced 15% tariffs under the previous agreement, while the UK has ensured that its medicines will be tariff-free for three years as part of the wider agreement, according to the U.S. Trade Representative’s Office.Additional relief is available for companies that invest in U.S. manufacturing while entering into “most-favored-nation” pricing agreements with the government. Currently, generic drugs are not covered by the tariffs, but that will be reviewed in a year.

Metal also appears on the radar

In addition to the drug measures, Trump also signed a proclamation adjusting tariffs on steel, aluminum 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 on a lower foreign price benchmark. Products made almost entirely of these metals will be subject to a flat tariff of 50%, while derivative products containing significant amounts of metals will face tariffs of 25% of their total value. Certain industrial and grid equipment will be taxed at a 15% rate by 2027, while goods produced abroad using entirely U.S. metals will face lower tariffs of 10%. Items with very low metal content (15% or less) will no longer be subject to these duties.These changes will take effect Monday at 12:01 pm Eastern Time.A senior government official said the changes addressed concerns about “foreign manipulation” of prices to reduce tariff payments. The revised structure aims to streamline the system and ensure fairer enforcement, the official added.“This is a matter of simplicity and fairness,” the official said.The government insists the measures will not affect household spending despite concerns about rising costs ahead of the midterm elections. “These will not have an impact on the prices of goods on the shelves,” the official insisted.The White House said the steps are part of a broader effort to bolster domestic production of strategic materials and strengthen the economy and national security. Officials highlighted the continued expansion of the U.S. metals industry, including new steelmaking capacity and investments in aluminum and copper production, as evidence of the impact of existing tariff policies.The latest announcement builds on previous actions under the Section 232 program, which has been used to impose and expand tariffs on imports of critical industries. The government says the measures support domestic producers, encourage investment and help create jobs while ensuring U.S. industry can compete more effectively.