Trump announces 100% tariffs amid war, 120-day warning, tightens import rules

US President Donald Trump has announced tariffs amid the Iran war. These tariffs are not directed against Iran but rather at pharmaceutical companies that have not participated in his "Most Favored Nation" pricing initiative. President Trump has introduced a comprehensive tariff plan and also made new changes to the metal import duty. Under the new policy, a 100 percent tariff has been imposed on some imported patented drugs and their key components. Trump's move is aimed at forcing drug manufacturers to transfer production to the US and provide medicines directly to American consumers at lower prices.

Trump administration officials say the move is aimed at boosting domestic production. A senior administration official said, "They were given ample warning, and we're going to implement it."

120-180 Days of Immediate Action

The Trump administration has given large pharmaceutical companies a 120-day deadline for these tariffs, which will take effect later this summer, while smaller companies will have 180 days to comply. However, the order includes extensive exemptions. Companies that agree to participate in pricing initiatives or establish manufacturing facilities in the US can significantly reduce or avoid tariffs. Tariffs for companies that transfer their production to the US can be reduced by up to 20 percent.

Additionally, companies located in regions with existing trade agreements, including the European Union, Japan, South Korea, and Switzerland, will face reduced tariffs of approximately 15 percent, while companies based in the UK will face a tariff of approximately 10 percent. The Trump administration has already reached agreements with more than a dozen pharmaceutical companies, offering pricing concessions and temporary tariff relief in exchange for domestic investment.

Metal Imports Tightening regulations

In addition to promoting pharmaceutical products, Trump signed an order revising tariffs on steel, aluminum, and copper imports to combat price manipulation by foreign exporters. Officials say this move was taken with this purpose. Under the new rules, the existing 50 percent tariff on primary metals will now be calculated based on US purchase prices rather than declared export prices.

This move marks a major shift in Trump's trade strategy, especially after a US Supreme Court ruling earlier this year that limited some of his previous tariff powers.