Washington: U.S. President Donald Trump's administration announced on Wednesday its decision to implement a 50 percent tariff on steel, aluminum, and copper imports, calculated based on the "full value" paid by U.S. customers, rather than relying on "artificially low" foreign prices. According to Yonhap News Agency, the administration also intends to modify tariffs on derivative metal products. Products containing less than 15 percent steel, aluminum, or copper by weight will face no extra sectoral duties, while a 25 percent tariff will apply to products exceeding this threshold. These adjustments are aimed at bolstering the U.S. steel industry, as emphasized by a senior U.S. official during a telephonic press briefing. On the same day, President Trump signed a separate document enacting a 100 percent tariff on patented pharmaceuticals that are not manufactured in the United States and lack most-favored-nation (MFN) status. However, countries like South Korea, Japan, Switzerland, and the European Union are exempt from this tariff due to existing bilateral trade agreements with the U.S. Exceptions to the pharmaceutical tariffs were also outlined, allowing companies that commit to building manufacturing plants in the U.S. to benefit from tariff reductions. These reductions include a decrease to 20 percent for companies building plants and a complete elimination of the tariff for those with an MFN agreement with the U.S. government. Large companies are given 120 days, and smaller companies 180 days, to announce "reshoring" plans before the tariffs take effect. When questioned about the potential impact of the metal derivative tariffs on affordability for American citizens, the official asserted there would be "no impact on affordability whatsoever," reassuring that the price of goods on the shelf would remain unaffected.
