The rumored new regulations on tariffs for metals and pharmaceuticals have been officially announced.
On Thursday, April 2, Eastern Time, the White House released two policy statements consecutively, announcing new tariff policies for key industrial and pharmaceutical sectors. Regarding metal tariffs, the Trump administration will maintain a 50% tariff on various imported steel, aluminum, and copper products, while simplifying tax rules for goods with lower metal content, imposing a uniform 25% tariff on manufactured and derivative products.
In terms of pharmaceutical tariffs, the United States will impose a 100% tariff on imported drugs and pharmaceutical ingredients &#34;that possess brands or patents,&#34; but countries, regions, and pharmaceutical companies that have reached agreements with the Trump administration can receive exemptions. Xinhua News Agency pointed out that this measure also provides paths for exemption or tariff reduction, aiming to force pharmaceutical companies to reach agreements with the White House on drug prices and industrial repatriation.
As the White House announced the new tariff policy, the major US stock indices maintained a slight downward trend, with the S&amp;P 500 down 0.07%, the Dow Jones Industrial Average down 0.18%, and the Nasdaq Composite down 0.09%.
Superficially, the new metal tariff policy might reduce tariffs on some derivative products, as the current policy requires companies to calculate taxes based on the steel and aluminum content, with the highest tariff reaching 50%. However, recent comments suggest that the new adjustments do not signify a substantial weakening of trade protectionism. For companies that previously found it difficult to accurately calculate metal content, the tax burden may actually become more certain or even increase, and the uniform taxation might broaden the scope of tariff application.
<h2>Unified 25% Tariff on Steel, Aluminum, and Copper Derivatives; Products with Less Than 15% Content Exempted</h2>
According to the White House announcement, this measure is based on Section 232 of the &#34;Trade Expansion Act of 1962&#34; and expands the scope of tariffs from traditional primary metals to a wider range of &#34;derivative products.&#34; The relevant regulations include:
<ul>
<li>Products that are entirely or almost entirely made of aluminum, steel, or copper (e.g., steel coils and aluminum plates) will be subject to a uniform tariff of 50% on their entire value.</li>
<li>Derivative products primarily made of steel, aluminum, or copper will be subject to a uniform tariff of 25% on their entire value.</li>
<li>Certain metal-intensive industrial and grid equipment will be subject to a 15% tariff rate until 2027, aiming to accelerate the large-scale industrial infrastructure construction currently underway across the United States.</li>
<li>Products manufactured abroad but using exclusively US-produced steel, aluminum, and copper as raw materials will be subject to a lower tariff rate of 10%.</li>
<li>Products with steel, aluminum, or copper content of 15% or less will no longer be subject to such &#34;Section 232&#34; metal tariffs.</li>
</ul>
The new regulations mean that the Trump administration will impose a uniform 25% tariff on steel, aluminum, copper, and their derivatives, extending the tariff coverage from raw materials to downstream manufactured goods. The policy's objective is clearly aimed at &#34;preventing circumvention of the existing tariff system.&#34;
The White House announcement emphasized that the imported goods subject to tariffs &#34;threaten US national security and industrial base.&#34;
From a policy perspective, this is a further &#34;patching of loopholes&#34; and upgrade to the steel and aluminum tariff system since 2025—previously, tariffs were only imposed on primary metals, and the issue of companies bypassing tariffs by processing them into components or finished products has become increasingly prominent.
More importantly, this round of measures continues the &#34;selective exemption&#34; mechanism:
<ul>
<li>Products that comply with US trade agreements, such as the USMCA, may still be exempted.</li>
<li>The government reserves the space to negotiate exemptions or quota arrangements with allies.</li>
</ul>
This point implies that the United States is not completely closing its market but is using tariffs as a bargaining chip to reshape the supply chain structure.
Potential impacts of the new regulations include: short-term upward volatility in copper, aluminum, and steel prices in the commodity markets; pressure on costs in the automotive, machinery, and construction supply chains in the manufacturing sector; and renewed negotiations with traditional suppliers like Canada, Mexico, and Brazil in the trade landscape.
<h2>100% Tariff on Imported Patented Drugs and Pharmaceutical Ingredients</h2>
Compared to metal tariffs, the policies in the pharmaceutical sector are more impactful.
White House announced that, also based on Section 232 of the &#34;Trade Expansion Act of 1962,&#34; US President Trump will impose a 100% tariff on imported drugs &#34;that possess brands or patents.&#34; The new tariffs will take effect 120 days after the announcement for specific large companies and 180 days for small companies.
The purpose of the new tariffs is to compel pharmaceutical companies to transfer production back to the United States. Companies can obtain policy exemptions if they commit to building factories in the US.
According to the White House announcement:
<ul>
<li>For countries and regions that have reached trade agreements with the United States, if the drugs are produced in the European Union, Japan, South Korea, or Switzerland and Liechtenstein, a treaty tariff of 15% will apply. If the drugs are produced in the UK, a lower tariff rate will apply, depending on the recently concluded UK-US drug trade agreement.</li>
<li>For companies that have signed the so-called &#34;Most Favored Nation&#34; (MFN) pricing agreement with the US Department of Health and Human Services (HHS) and signed a domestic production agreement with the US Department of Commerce, a 0% tariff rate will apply until January 20, 2029.</li>
<li>For companies that have only signed a domestic production agreement with the US Department of Commerce, a 20% tariff rate will apply. The US Department of Commerce and HHS will provide relevant channels for companies to sign domestic production agreements and MFN pricing agreements with the US government.</li>
<li>Currently, generic drugs, biosimil drugs, and their related ingredients are temporarily exempt from tariffs. This policy will be re-evaluated in one year.</li>
</ul>
This policy continues the signal previously released by the Trump administration—namely, using tariffs to promote pharmaceutical manufacturing &#34;backflow to the US.&#34; Previous media reports indicated that relevant measures would target high-priced innovative drugs and multinational pharmaceutical companies.
The design of the new tariff policy has several key features:
<ul>
<li>Precisely targeting the core profits of multinational pharmaceutical companies. The patented drugs of such companies usually have the highest profit margins, and a 100% tariff is almost equivalent to a &#34;market access barrier.&#34;</li>
<li>Tied to industrial policy. Tariffs are not merely protection but a &#34;market for investment&#34; mechanism, where companies can avoid tariffs by building factories in the US.</li>
<li>Strengthening the national security narrative. The White House emphasizes the importance of the pharmaceutical supply chain for public health and national security.</li>
</ul>
Potential impacts of the new policy include: global pharmaceutical giants facing pressure to restructure their supply chains; potential phased fluctuations in US drug pricing structures; shocks to countries exporting generic and innovative drugs such as India and Europe; and increased capital expenditures for multinational pharmaceutical companies, potentially accelerating investment in the US.

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The White House announced that based on Section 232 of the 1962 Trade Act, a 50% tariff will be maintained on products entirely made from imported steel, aluminum, and copper, with exemptions for products containing no more than 15% steel, aluminum, or copper. Under the same act, imported patented drugs and pharmaceutical ingredients will be subject to a 100% tariff. However, countries and regions that have signed trade agreements with the US, such as the EU, will be subject to a 15% treaty tariff. Companies that sign Most Favored Nation (MFN) pricing agreements and domestic production agreements with the US will be exempt from tariffs until 2029

- On April 2, 2026, the White House announced new tariffs on metals and pharmaceuticals, maintaining a 50% tariff on various imported steel, aluminum, and copper products, while imposing a 25% tariff on derived products.  
- In the pharmaceutical sector, a 100% tariff will apply to import drugs with brands or patents, although exemptions may be granted to companies that agree to relocate production to the U.S.  
- These measures aim to enhance U.S. manufacturing and reshape supply chains, with potential impacts on prices and supply dynamics in both commodity markets and the pharmaceutical industry.

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Official Announcement: US Maintains 50% Metal Tariffs, Imposes 25% Tariffs on Some Finished Products, 100% on Patented Drugs, but "Exempts" Those Complying with Agreements