Trump Announces 100% Tariff On Medicines, 50% On Metals Amid Iran War Tensions & Push For US Manufacturing

Mumbai: The US government has announced a major tariff policy targeting both the pharmaceutical and metal sectors. Companies that do not follow the 'Most Favored Nation' pricing rule will face a 100 percent tariff on medicines. At the same time, 50 percent tariffs on metals like steel, aluminium, and copper have been tightened.

Why This Decision Was Taken?

The government wants companies to increase manufacturing in the US and offer medicines at lower prices to American consumers. By imposing high tariffs, companies are being pushed to either shift production to the US or reduce pricing.

Deadline for Companies

Pharma companies have limited time to respond:

Large companies: 120 days

Smaller companies: 180 days

If they agree to local production or pricing deals, tariffs can be reduced to around 20 percent or even removed.

Relief for Some Countries

Not all countries face the same tariffs. Some key US allies will get lower rates:

EU, Japan, South Korea, Switzerland: 15 percent tariff

UK: 10 percent tariff

This shows the US is trying to balance strict rules with trade partnerships.

Impact on Pharma and Metals

This is the first major time the pharma sector has been directly targeted in a trade policy of this scale. Metals have also seen stricter rules, with tariffs now calculated based on US purchase prices instead of export value.

Products using large amounts of metal, such as appliances, may face 25 percent tariffs.

What It Means for Consumers and Markets?

The government believes these steps will boost domestic production and control prices in the long run. However, experts warn that companies may pass on higher costs to consumers, leading to higher prices and inflation pressures.

Markets remain cautious as the global impact of these tariffs could affect trade, supply chains, and economic stability.