US President Donald Trump has signed a sweeping order imposing steep tariffs on imports of steel, aluminium and copper, while also introducing new duties on patented pharmaceutical products, in a move framed around national security and domestic manufacturing.
The decision marks a further escalation in Washington’s protectionist trade approach, with direct implications for global exporters, including India, particularly in the metals and pharmaceutical sectors.
Under the new proclamation, most primary steel and aluminium imports will attract a 50 per cent ad valorem duty, while certain derivative products will face a 25 per cent tariff. The revised rules require duties to be calculated on the full declared value of goods, a shift aimed at closing gaps that officials said were being exploited.
Officials said importers had been undervaluing shipments to reduce tariff payouts. “We are going to charge 50 per cent of the full value of the steel paid by US customers in America,” a senior administration official said, adding that the changes would eliminate pricing distortions.
“They were just artificially making it lower, and we’re just getting rid of that because they were basically fooling the system,” the official added.
New pharma tariffs target patented drugs, spare generics for now
Alongside the metals decision, the administration has announced a separate framework imposing a 100 per cent tariff on patented drug imports from countries, including India, that have not entered into reshoring or pricing agreements with US authorities.
“100% tariff is on patented products. Any patented drug imports from India made by companies that do not get approved for a reshoring plan will be subject to a 100% tariff.”
According to ANI, generic medicines have been kept outside the tariff net for now, though officials indicated that this could be reviewed if companies do not shift production to the United States.
“Generics, which are the majority of Indian pharma exports, are exempt from tariffs, but the Commerce Department will evaluate the state of generics reshoring and re-evaluate generics tariffs accordingly,” the official told ANI.
The new pharma duties will be implemented in phases, beginning July 31 for large firms and September 29 for smaller companies.
Officials said the broader objective is to reduce reliance on foreign suppliers for critical medicines. Preferential tariff rates have been offered to select partners, including South Korea, Japan, the European Union, and Switzerland (15%), while the United Kingdom faces a lower rate (10%) due to existing agreements.
Revised rules for metal-based products, rollout from April 6
The administration has also simplified tariff rules for products containing steel, aluminium or copper. Items with less than 15 per cent metal content by weight will not face additional duties, while those above that threshold will be subject to a flat 25 per cent tariff on the entire product value.
Officials argued the changes would make compliance easier while strengthening enforcement. They also said domestic production levels have improved since earlier tariffs, but further action is needed to reach targeted capacity utilisation levels.
The new tariffs on metals will take effect from April 6 for all eligible imports entering the US market.