Trump orders new pharma tariff, reshapes metal duties

WASHINGTON: President Trump signed an executive order on Thursday imposing a 100% tariff on select pharmaceuticals and tightening duties on industrial metals. The policy aims to ‘reclaim the American medicine cabinet’ by forcing a shift toward domestic manufacturing and reducing reliance on foreign supply chains.

The mandate’s primary focus is the global pharmaceutical industry. Effective at the end of July2026, a 100% tariff will apply to patented drugs and Active Pharmaceutical Ingredients (APIs) from ‘non-aligned’ partners. 

To avoid these costs, major firms like Eli Lilly and Pfizer must enter into ‘Most Favored Nation’ pricing deals or commit to onshoring their production. While a tiered system offers lower rates for allies like the EU and Japan, the central goal remains the revitalization of American-based drug synthesis.

Following these pharmaceutical measures, the order simultaneously restructures duties on steel, aluminum, and copper. The administration maintained a 50% benchmark tariff on core metal products while introducing a 25% levy on ‘derivative articles’ such as heavy-duty trucks and appliances. By closing transshipment loopholes and focusing on full customs value, the White House intends to protect domestic industry from artificially low foreign pricing.

While the administration anticipates a surge in U.S. manufacturing, the move has triggered immediate market volatility. Industry groups warn that these protectionist measures could lead to short-term price hikes for both patients and manufacturers. As the healthcare and construction sectors brace for these realignments, the global community is monitoring for potential retaliatory trade actions.

Photo Credits: AFP