WASHINGTON, D.C. — Importers of patented drugs, steel, aluminum, and copper products will face sharply higher tariffs under two presidential proclamations issued Wednesday, a move the White House says is intended to strengthen domestic manufacturing and reduce reliance on foreign supply chains.
What This Means for You
- Patented pharmaceutical imports and ingredients could face tariffs as high as 100 percent, depending on the product, country of origin, and whether a company agrees to move production to the United States.
- Steel, aluminum, and copper tariffs will be recalculated on the full customs value of affected imports, with many products facing 50 percent or 25 percent rates starting April 6.
- Generic drugs are exempt for now, but the administration said that category will be reviewed within a year.
The first proclamation imposes new Section 232 tariffs on patented pharmaceuticals and associated active pharmaceutical ingredients, or APIs, which are the chemical components that make medicines work. The administration said the action follows a Commerce Department finding that heavy reliance on imported patented medicines and ingredients threatens national security and public health.
Under the order, most covered patented pharmaceuticals and ingredients will face a 100 percent ad valorem tariff, meaning the duty is charged as a percentage of the product’s value. Companies with approved plans to move manufacturing to the United States could receive a 20 percent rate that rises to 100 percent on April 2, 2030. Companies that enter approved onshoring and most-favored-nation pricing agreements with the federal government could receive a zero tariff through January 20, 2029.
The pharmaceutical tariffs will not apply at this time to generic drugs, biosimilars, or certain specialty products, including some orphan drugs, nuclear medicines, fertility treatments, cell and gene therapies, and animal-health products, subject to conditions laid out in the proclamation. The White House said the new pharmaceutical tariffs will take effect July 31, 2026, for certain large companies and September 29, 2026, for other companies.
Drug Supply Chain and Price Questions
The administration said the pharmaceutical action is meant to push more drug production and research back into the United States after Commerce found that about 53 percent of patented pharmaceutical products distributed domestically are produced outside the country and that only about 15 percent of patented APIs by volume for the U.S. market are produced domestically.
The proclamation also sets reduced pharmaceutical tariff rates for certain trading partners. Products from the European Union, Japan, South Korea, Switzerland, and Liechtenstein will generally face a 15 percent tariff unless a lower rate applies, while products from the United Kingdom will face a 10 percent rate that could later drop to zero under a future agreement.
Metals Tariffs Expand
In a separate proclamation, Trump also revised existing Section 232 tariffs on steel, aluminum, and copper, ordering that the duties be applied to the full customs value of affected products rather than only the metal content. That change takes effect at 12:01 a.m. Eastern on April 6, 2026.
Under the new metals rules, aluminum and steel articles, most copper articles, and some derivative products will generally face a 50 percent tariff, while certain other copper articles and some steel and aluminum derivative products will generally face a 25 percent tariff. Products made entirely with U.S.-origin aluminum, steel, or copper can qualify for a 10 percent rate, and some United Kingdom products qualify for reduced rates.
The proclamation also removes some products from tariff coverage, ends the prior derivative-inclusions process, and authorizes Commerce and the U.S. trade representative to add more derivative articles on a rolling basis if imports are found to undermine the tariff program’s national security goals.
Next Steps
Both proclamations were issued under Section 232 of the Trade Expansion Act of 1962, which allows the president to restrict imports deemed harmful to national security. The pharmaceutical order directs Commerce and the Department of Health and Human Services to continue negotiating company-specific and country-specific agreements, while the metals order requires Commerce and the trade representative to provide the president with an update within 90 days.
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