Official announcement: The United States maintains a 50% tariff on metals, imposes a 25% tariff on some finished products, and a 100% tariff on patented medicines, but complies with the agreement's "exemption."

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Rumored new regulations on metal and drug tariffs have been officially announced.

On Thursday, April 2, Eastern Time, the White House released two policy briefing documents in succession, announcing new tariff policies for key industrial and pharmaceutical sectors. Regarding metal tariffs, the Trump administration maintained a 50% tariff on various imported steel, aluminum, and copper products, while simplifying the tax rules for products with lower metal content, applying a unified 25% tariff on finished products and derivatives.

In terms of pharmaceutical tariffs, the U.S. will impose a 100% tariff on imported drugs and pharmaceutical ingredients that have brand names or patents, but countries, regions, and pharmaceutical companies that have already reached agreements with the Trump administration can be exempted. Xinhua News Agency pointed out that this measure also provides pathways for exemptions or tariff reductions, aiming to pressure pharmaceutical companies to reach agreements with the White House on drug prices and industry return.

When the White House announced the new tariff policy, major U.S. stock indices remained slightly down, with the S&P 500 falling 0.07%, the Dow Jones down 0.18%, and the Nasdaq down 0.09%.

On the surface, the new metal tariffs may reduce tariffs on some derivatives because the current policy requires companies to calculate tariffs based on the steel, aluminum, and copper content in their products, with a maximum of 50%. However, recent commentary suggests that the adjustment does not mean a substantial weakening of trade protection. For companies that previously found it difficult to accurately assess metal content, the tax burden might become more certain or even increase, and unified tariffs could expand the scope of tariffs.

Unified 25% tariffs on steel, aluminum, copper derivatives; products with content not exceeding 15% are exempt

According to the White House announcement, this measure is based on the Trade Expansion Act of 1962, Section 232, expanding the scope of tariffs from traditional primary metals to a broader range of “derivative products.” Relevant provisions include:

• Products that are wholly or almost wholly made of aluminum, steel, or copper (e.g., steel coils and aluminum sheets) will be uniformly tariffed at 50% based on their full value.

• Derivative products mainly made of steel, aluminum, or copper will be uniformly tariffed at 25% based on their full value.

• Certain metal-intensive industrial equipment and grid equipment will be subject to a 15% tariff rate until 2027, aiming to accelerate large-scale industrial infrastructure projects currently underway across the U.S.

• Products manufactured abroad but using entirely 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.

This new regulation means the Trump administration will impose a unified 25% tariff on steel, aluminum, copper, and their derivatives, extending tariffs from raw materials to downstream finished products. The policy’s clear goal is to “prevent circumvention of the existing tariff system.”

The White House emphasized that imported goods subject to tariffs “threaten U.S. national security and industrial base.”

From a policy logic perspective, this is an upgrade to close loopholes in the steel and aluminum tariff system since 2025—previously, tariffs only applied to primary metals, and companies increasingly bypassed tariffs by processing metals into components or finished products.

More importantly, this round of measures continues the “selective exemption” mechanism:

• Products that comply with U.S. trade agreements, such as the USMCA, can still be exempted.

• The government retains room to negotiate exemptions or quota arrangements with allies.

This means the U.S. is not fully closing its market but using tariffs as bargaining chips to reshape supply chains.

Potential impacts of the new regulations include: short-term price fluctuations in copper, aluminum, and steel in commodity markets; increased costs in manufacturing sectors such as automotive, machinery, and construction; and a rebalancing of trade relations with traditional suppliers like Canada, Mexico, and Brazil.

100% tariffs on imported drugs and pharmaceutical ingredients with brand names or patents

Compared to metal tariffs, policies in the pharmaceutical sector are more impactful.

The White House announced that, also based on the Trade Expansion Act of 1962, President Trump will impose a 100% tariff on imported drugs with brand names or patents. The new tariffs will take effect 120 days after the announcement for large companies and 180 days for smaller companies.

The goal of the new tariffs is to force pharmaceutical companies to relocate production to the U.S. If companies commit to building factories in the U.S., they can receive policy exemptions.

According to the White House announcement,

• For countries and regions that have trade agreements with the U.S., such as the EU, Japan, South Korea, or Switzerland and Liechtenstein, drugs produced there will be subject to a 15% tariff as per agreement.

• For drugs produced in the UK, a lower tariff rate will apply, depending on the recent U.S.-UK pharmaceutical trade agreement.

• For companies that have signed a “Most Favored Nation” (MFN) pricing agreement with the U.S. Department of Health and Human Services (HHS) and a repatriation production agreement with the U.S. Department of Commerce, a 0% tariff will apply until January 20, 2029.

• For companies that have only signed a repatriation production agreement with the Department of Commerce, a 20% tariff will be applied. The Departments of Commerce and HHS will provide channels for companies to sign repatriation and MFN pricing agreements.

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

This policy continues the signals from the Trump administration—using tariffs to promote the “return of pharmaceutical manufacturing to the U.S.” Previously, media reports indicated that measures would target high-priced innovative drugs and multinational pharmaceutical companies.

Key features of the new tariff policy include:

• Precisely targeting the profit core of multinational pharmaceutical companies. Patented drugs from such companies typically have the highest profit margins, and a 100% tariff is almost equivalent to a “market access barrier.”

• Tying tariffs to industrial policy. Tariffs are not merely protectionist but part of an “investment-for-market” mechanism, where companies can avoid tariffs by building factories in the U.S.

• Reinforcing the national security narrative. The White House emphasizes the importance of the pharmaceutical supply chain for public health and national security.

Potential impacts include: global pharmaceutical giants facing supply chain restructuring pressure; U.S. drug prices potentially experiencing short-term fluctuations; India, Europe, and other generic and innovative drug exporters being affected; multinational pharmaceutical companies increasing capital expenditure or accelerating investment in the U.S.