Trump Imposes 100% Pharmaceutical Tariffs After Supreme Court Ruling

On April 2, 2026, Donald Trump signed executive orders imposing tariffs of up to 100% on imported patented pharmaceuticals and their ingredients. The move, based on a Section 232 investigation, aims to force the reshoring of drug production to the U.S. and lower prices via a most-favored-nation pricing model. Companies can reduce the levy to 20% by committing to build U.S. plants, or achieve 0% through pricing agreements with the Department of Health and Human Services. Generic medicines remain exempt for at least one year. Preferential rates of 10-15% were granted to the UK, EU, Japan, South Korea, and Switzerland.

Simultaneously, the president overhauled Section 232 tariffs on steel, aluminum, and copper. Effective April 6, the new tiered system applies a 50% duty to raw metals based on full customs value to prevent undervaluation. Derivative products with more than 15% metal content face a 25% tariff, while those with 15% or less are exempt. Specific industrial and electrical grid equipment received a reduced 15% rate through 2027.

These sectoral measures follow a February 2026 Supreme Court ruling that struck down the broad Liberation Day tariffs implemented on April 2, 2025. The court declared the use of the International Emergency Economic Powers Act for such wide-scale taxes illegal, requiring the government to refund between $166 billion and $175 billion to importers. While the administration claims these policies supercharge domestic industry, critics and business groups warn they increase healthcare costs and consumer prices, with some reports suggesting U.S. households paid over $1,000 more for goods in 2025.