President Trump imposes 100% tariffs on certain drug imports, while adjusting metal tariffs

The administration led by President Donald Trump will impose tariffs of up to 100% on imported branded pharmaceuticals, aiming to encourage pharmaceutical companies to produce domestically in the United States. The executive order signed by the president on Thursday, April 2nd, will also adjust import tariffs on certain products containing steel, aluminum, and copper.

The primary targets of these tariffs are branded drugs produced by pharmaceutical companies that have not yet reached agreements with the president to lower U.S. drug prices or relocate production back to America.

This marks the first move by the administration to raise tariffs since the Supreme Court ruled earlier this year, limiting the president’s trade agenda for 2025 and excluding pharmaceutical firms. The initiative represents a pivotal step in President Trump’s broader push to advance his trade strategy and rebalance economic relations between the United States and other countries.

The new plan will impose tariffs of up to 100% on certain imported medicines, but companies relocating production to the U.S. will receive a reduced rate of 20%. Companies that sign "most-favored-nation" pricing agreements will be completely exempt from tariffs. Additionally, certain medications will be exempt, including generic drugs, so-called “orphan drugs” used to treat rare diseases, and veterinary medicines.

These statements come as the one-year anniversary of what President Trump called “Liberation Day”—a day when he implemented a series of sweeping tariffs against U.S. trading partners, later ruled unconstitutional by the Supreme Court.

An investigation launched last year by the U.S. Department of Commerce assessing the national security implications of producing drugs overseas has provided momentum behind President Trump’s newly enacted drug tariff policy.

Last July, the president announced plans to impose tariffs of up to 200% on pharmaceuticals, prompting countries and pharmaceutical companies to negotiate agreements with the government to reduce costs. According to a White House fact sheet, "If the drugs originate from the EU, Japan, South Korea, Switzerland, or Liechtenstein, a 15% tariff will apply. If the drugs come from the UK, a lower tariff will be applied, depending on the recently concluded UK pharmaceutical agreement."

Some major pharmaceutical companies—including Pfizer, Merck, Bristol Myers Squibb, and AstraZeneca—have already reached individual agreements with the White House, under which their imported drugs will be exempt from tariffs.

In another move, the U.S. is also revising how tariffs on steel, copper, and aluminum are assessed. The White House stated that the applicable tax amounts will now be calculated based on the total value paid by U.S. customers for these metals, rather than their foreign production costs.

Source: vov

Original article: toutiao.com/article/1861497612308484/

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