President Donald Trump ordered new tariffs of up to 100% on imported patented pharmaceuticals and their ingredients, aiming to bolster domestic production and secure supply chains deemed vital to national security.

The executive order, titled "Adjusting Imports of Pharmaceuticals and Pharmaceutical Ingredients into the United States," targets branded drugs from companies that fail to negotiate most-favored-nation pricing deals or commit to building U.S. manufacturing facilities. Companies with approved onshoring plans face a 20% tariff initially, rising to 100% by April 2, 2030. Reduced rates apply to allies: 15% for products from the European Union, Japan, South Korea, Switzerland, and Liechtenstein; and 10% for the United Kingdom, potentially dropping to zero under future agreements.

Exemptions include generic drugs, biosimilars, orphan drugs for rare diseases, nuclear medicines, plasma therapies, fertility treatments, and other specialty products meeting public health criteria. Major drugmakers such as Pfizer, Merck, Bristol Myers Squibb, and AstraZeneca already secured zero tariffs through prior pricing and production commitments. The duties take effect July 31, 2026, for listed companies and September 29 for others, following a Commerce Department investigation that highlighted U.S. reliance on imports for 53% of patented drugs and 85% of active ingredients.

In a separate action, Trump adjusted Section 232 national security tariffs on steel, aluminum, and copper. The changes simplify the regime by imposing a flat 25% tariff on the full value of imported products containing more than 15% of those metals by weight, while exempting items below that threshold. Raw metal imports retain a 50% duty, now calculated on the U.S. sales price to close loopholes from undervalued foreign costs. This overhaul addresses complaints about prior complexity and aims to protect American metal producers without broadly inflating consumer prices.

The announcements mark the first anniversary of "Liberation Day," when Trump unveiled broad reciprocal tariffs later invalidated by the Supreme Court. They follow sector-specific probes and reflect a pivot to targeted measures to revive U.S. manufacturing, incentivize reshoring, and generate revenue estimated at $70 billion.

A senior administration official emphasized the need for secure drug supplies, stating, "We've allowed other countries to make the drugs, and therefore we're beholden to these other countries." U.S. Trade Representative Jamieson Greer added, "President Trump's tariff program incentivizes domestic production, raises workers' wages, and reinforces our critical supply chains."

Reactions were mixed. The Steel Manufacturers Association praised the metals tweaks for precision, while the U.S. Chamber of Commerce warned of higher healthcare and manufacturing costs amid elevated energy prices from the Iran conflict. Pharmaceutical importers expressed concerns over potential supply disruptions, though exemptions mitigate broad impacts.