Official announcement: The United States maintains 50% metal tariffs, imposes 25% tariffs on some manufactured products, and imposes 100% tariffs on patented drugs, but it will comply with the agreement and is

# Li Dan

Source: Wall Street News

The White House announced that, pursuant to Section 232 of the Trade Expansion Act of 1962, a **50% tariff** will be maintained on products made entirely from imported steel, aluminum, and copper, with exemptions for products where steel, aluminum, or copper content does not exceed **15%**. Under the same statute, a **100% tariff** will be imposed on imported patented drugs and pharmaceutical ingredients; for drugs produced in the EU and other regions with U.S. trade agreements, a **15% agreed tariff rate** will apply. Companies that have signed **Most-Favored-Nation (MFN) pricing agreements** and **reshoring production agreements** with the U.S. will be tariff-exempt through **2029**.

The long-rumored new tariffs on metals and pharmaceuticals have been officially announced.

On Thursday, April 2 (ET), the White House issued two consecutive policy statements, announcing new tariff measures for key industrial and pharmaceutical sectors. For metals, the Trump administration is maintaining a **50% tariff** on a wide range of imported steel, aluminum, and copper products, while simplifying rules for goods with low metal content by imposing a **unified 25% tariff** on finished and derivative products.

For pharmaceuticals, the U.S. will impose a **100% tariff** on imported **branded or patented drugs and pharmaceutical ingredients**, with exemptions available for countries/regions and pharmaceutical firms that have reached agreements with the Trump administration. Xinhua News Agency noted that the measure simultaneously provides pathways for exemptions or reduced tariffs, designed to force drugmakers to strike deals with the White House on pricing and industrial reshoring.

As the White House announced the new tariff policy, major U.S. stock indexes remained on a slight downward trend: the S&P 500 fell **0.07%**, the Dow Jones Industrial Average dropped **0.18%**, and the Nasdaq Composite declined **0.09%**.

On the surface, the new metal tariff policy may lower duties on some derivatives, as current rules require companies to calculate tax liability based on steel and aluminum content in products, with a maximum **50% tariff**. However, recent commentary argues the adjustments do not signal a meaningful weakening of trade protection. For firms that previously struggled to accurately calculate metal content, tax burdens may instead become more certain—or even increase—and the unified levy could expand the scope of tariff coverage.

### Unified 25% Tariff on Steel, Aluminum, Copper Derivatives; 15% Content Threshold for Exemption

According to the White House announcement, the measures are legally grounded in **Section 232 of the Trade Expansion Act of 1962**, expanding tariff coverage from traditional primary metals to a broader range of **"derivative products."** Key provisions include:

- Products made **wholly or almost entirely** of aluminum, steel, or copper (e.g., steel coils, aluminum sheets) will be subject to a **unified 50% tariff** on their full value.

- Derivative products **primarily made** of steel, aluminum, or copper will face a **unified 25% tariff** on their full value.

- Certain metal-intensive industrial and power grid equipment will qualify for a **15% tariff rate through 2027**, aimed at accelerating large-scale industrial infrastructure projects underway nationwide.

- Products manufactured overseas but **using exclusively U.S.-produced steel, aluminum, and copper** as raw materials will be subject to a lower **10% tariff rate**.

- Products with steel, aluminum, or copper content of **15% or less** will no longer be subject to these Section 232 metal tariffs.

The new rules mean the Trump administration is imposing a **unified 25% tariff** on steel, aluminum, copper, and their derivatives, extending coverage from raw materials to downstream finished goods. The policy explicitly targets **"preventing circumvention of existing tariff regimes."**

The White House statement emphasized that imported goods subject to tariffs **"threaten U.S. national security and industrial base."**

Logically, this represents a further **"loophole-closing upgrade"** to the steel and aluminum tariff framework in place since 2025—previously limited to primary metals, with growing circumvention via processing into components or finished products.

Crucially, the measures retain the **"selective exemption"** mechanism:

- Products eligible under U.S. trade agreements (e.g., USMCA) remain exempt

- The government reserves space to negotiate exemptions or quota arrangements with allies

This means the U.S. is not fully closing its markets, but rather using tariffs as bargaining chips to resupply chain structures.

Potential impacts include: short-term upward price volatility for copper, aluminum, and steel in commodity markets; cost pressures across automotive, machinery, and construction manufacturing chains; and renewed trade negotiations with traditional suppliers like Canada, Mexico, and Brazil.

### 100% Tariff on Imported Branded/Patented Drugs and Pharmaceutical Ingredients

The pharmaceutical policy carries greater impact than metal tariffs.

The White House announced that, also under **Section 232 of the Trade Expansion Act of 1962**, President Trump will impose a **100% tariff** on imported **branded or patented drugs**. The new tariffs will take effect **120 days** after announcement for large specified companies, and **180 days** for smaller firms.

The tariff’s goal is to force pharmaceutical companies to **shift production to the U.S.** Firms committing to build U.S. factories may qualify for policy exemptions.

Per the White House announcement:

- For regions with U.S. trade agreements: drugs produced in the EU, Japan, South Korea, Switzerland, and Liechtenstein will face a **15% agreed tariff rate**. Drugs from the UK will qualify for a lower rate, per the recent U.S.-UK pharmaceutical trade deal.

- For companies that have signed **MFN pricing agreements** with the U.S. Department of Health and Human Services (HHS) **and** reshoring production agreements with the U.S. Department of Commerce, a **0% tariff rate** will apply through **January 20, 2029**.

- For companies that have signed **only** reshoring production agreements with the Commerce Department, a **20% tariff rate** will apply. The Commerce Department and HHS will provide channels for firms to sign these agreements.

Currently, **generic drugs, biosimilars, and related ingredients** are not subject to tariffs. The policy will be re-evaluated after one year.

This continues the Trump administration’s earlier signal: using tariffs to drive pharmaceutical manufacturing **"reshoring to the U.S."** Media previously reported measures targeting high-priced innovative drugs and multinational pharmaceutical corporations.

The new tariff policy features several key design elements:

- **Precision targeting of core pharma profits**: Patent drugs generate the highest margins; a 100% tariff effectively acts as a **market access barrier**.

- **Tied to industrial policy**: Tariffs are not purely protective, but an **"investment-for-market access"** mechanism—firms can avoid duties by building U.S. factories

- **National security framing**: The White House emphasizes pharmaceutical supply chains’ importance to public health and national security

Potential impacts include: supply chain restructuring pressure on global pharma giants; transitional volatility in U.S. drug pricing structures; shocks to generic/innovative drug exporters like India and Europe; rising capital expenditures for multinationals; and accelerated U.S. investment.

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