The Donald Trump administration announced on April 2 that it will impose 50 percent tariffs on imported steel, aluminum and copper based on the full value paid by U.S. customers. It also adjusted tariffs on derivative metal products and introduced a 100 percent duty on patented pharmaceuticals not made in the U.S. South Korea and others are exempt from the pharmaceutical tariff.
WASHINGTON — The Donald Trump administration announced on April 2 that it will impose 50 percent tariffs on steel, aluminum and copper imports based on the full value paid by U.S. customers, rather than artificially low foreign prices. The White House stated the changes aim to more effectively address the national security threat posed by such imports.
Tariffs on derivative metal products will be simplified: no additional duties for products with less than 15 percent steel, aluminum or copper by weight, and 25 percent for those exceeding the threshold. A senior U.S. official said in an online briefing, "Instead of doing this complex calculation, we will simply say it's a 25 percent tariff on a washing machine because obviously, washing machines are made of huge amounts of steel." The adjustments are expected to affect Korean exporters of washing machines and refrigerators.
Trump also signed a document imposing a 100 percent tariff on patented pharmaceuticals not made in the U.S. and lacking a most-favored-nation pricing agreement. South Korea, Japan, Switzerland and the European Union are exempt due to bilateral trade deals. Companies committing to U.S. plants face 20 percent tariffs, or zero with an MFN agreement; big firms get 120 days and smaller ones 180 days for reshoring plans.
The official dismissed affordability concerns, stating there will be "no impact on affordability whatsoever" and "these will not have an impact on the price of the goods on the shelf." Both measures invoke Section 232 of the 1962 Trade Expansion Act.
