U.S. President Donald Trump ordered 100% tariffs on certain branded pharmaceutical imports but, as reported by Reuters on Thursday, simultaneously announced broad exemptions that reduce the effective rate to 0% for many companies. The tariffs will not apply uniformly to drug imports from all countries. Under trade agreements with the EU, Japan, South Korea, and Switzerland, tariffs on branded drugs will be capped at 15%.
Separately, the United States and Britain finalized a pharmaceutical tariff agreement that guarantees zero tariffs on British-made pharmaceuticals for at least three years, as the U.K. ramps up production capacity in the United States.
At the same time, the administration restructured duties on steel, aluminum, and copper. In a separate proclamation, Trump cut the tariff rate to 25% on many derivative products made from these metals and eliminated tariffs altogether on products with minimal metal content, while maintaining the 50% duty on commodity imports of steel, aluminum, and copper.
