The United States announces new tariffs on drugs and steel and aluminum

New York, April 2 (Xinhua) -- The White House announced on the 2nd that President Trump signed a document that, in accordance with Section 232 of the 1962 Trade Expansion Act, the United States will impose 100% tariffs on some imported patented drugs and pharmaceutical ingredients, and adjust the ad valorem tariffs on imported steel, aluminum, copper, and related derivative products.

According to the White House announcement, the above tariff measures on imported patented drugs and pharmaceutical ingredients will take effect 120 days later for specific large enterprises and 180 days later for small enterprises. For imported drugs produced in the European Union, Japan, South Korea, Switzerland, and Liechtenstein, a 15% tariff will be applied according to the trade agreement. For imported drugs produced in the UK, lower tariffs will apply, with specific standards based on the recent drug agreement reached with the UK. No tariffs will be imposed on imported generic drugs and their pharmaceutical ingredients temporarily.

The announcement shows that this measure also provides a path for pharmaceutical companies to exempt or reduce tariffs, aiming to force them to reach an agreement with the White House on drug prices and industry return to the United States. Specifically, companies that have signed "Most Favored Nation" pricing agreements with the US Department of Health and Human Services and return to US production agreements with the US Department of Commerce will be exempt from tariffs until January 20, 2029; For companies that have only signed a return production agreement with the US Department of Commerce, a 20% tariff will apply.

The White House claims that the above measures aim to strengthen the domestic pharmaceutical industry foundation and safeguard the economic and national security interests of the United States.

Another announcement released by the White House stated that Trump signed a document that, in accordance with Section 232 of the 1962 Trade Expansion Act, the United States will adjust the ad valorem tariffs imposed on imported steel, aluminum, copper, and related derivative products starting from the 6th.

According to the new regulations, products made entirely or almost entirely of steel, aluminum, or copper will continue to be subject to a 50% import ad valorem tariff, but the tariff calculation will be based on the complete customs valuation of the imported product. In addition, derivative products mainly made of steel, aluminum, or copper will be subject to a 25% ad valorem tariff; Steel and aluminum products from the UK that meet certain conditions will be subject to a tax rate of 25% or 15%; Derivative products produced entirely from steel, aluminum, and copper smelted in the United States will be subject to a 10% import tariff.

In March 2018, during his first presidential term, Trump implemented a policy of imposing tariffs on imported steel and aluminum. After taking office again in 2025, he adjusted the steel and aluminum policy during the Biden administration and introduced a copper tariff policy.