A year after 'Liberation Day,' Trump sets new drug tariffs, adjusts metals duties

• Drug manufacturers have 120-180 days to comply by cutting prices and relocating production to avoid 100% tariffs, though tariffs are capped at 15% for EU, Japan, South Korea, and Switzerland under existing trade deals
• Metal derivative product tariffs were reduced from 50% to 25%, with products containing less than 15% metal content by weight now exempt, while the 50% base rate on steel, aluminum, and copper will now apply to U.S. sales price rather than declared import value
• The U.S. Chamber of Commerce warned the new pharmaceutical and metals tariff schemes will raise healthcare costs and add pressure to manufacturing, construction, and energy industries already facing higher input costs

Summary

President Trump announced major tariff changes on April 2, 2026, one year after his controversial "Liberation Day" tariffs were struck down by the Supreme Court in February. The new measures target pharmaceuticals and revise metals duties.

Key Policy Changes:

Pharmaceuticals: Trump imposed 100% tariffs on branded drug imports unless manufacturers agree to both cut U.S. prescription prices and relocate production to America. Companies moving production only face 20% tariffs. Large drugmakers have 120 days to comply; smaller ones get 180 days. Tariffs are capped at 15% for imports from the EU, Japan, South Korea, and Switzerland under existing trade deals. Britain secured zero tariffs for three years.

Metals: Tariffs on steel, aluminum, and copper derivative products were halved to 25%, with exemptions for items containing less than 15% metal by weight. The 50% duty on raw metal commodities remains but will now apply to U.S. sales prices rather than import values. Metal-intensive industrial and power-grid equipment receives reduced 15% rates through 2027. Changes take effect Monday.

Context: The original "Liberation Day" tariffs, ranging from 10-50% on all trading partners, resulted in $166 billion in collections before being invalidated. The Supreme Court ruling requires CBP to devise refund plans.

Market Reaction: The U.S. Chamber of Commerce warned the measures will raise healthcare and manufacturing costs, adding pressure to industries already facing supply-chain challenges and higher input costs from the Iran war's energy price spike. The Steel Manufacturers Association praised the metals tariff adjustments as appropriately targeted.