The Trump administration announced major revisions to its trade policy on Thursday, simplifying steel and aluminum tariffs while imposing a 100 percent tariff on certain imported pharmaceuticals. The changes affect two industries that have been central to the president's trade agenda. The administration aims to strengthen domestic manufacturing while addressing concerns from businesses about the complexity of existing tariff structures.

For metal products, the new system will charge a flat 25 percent tariff on any item containing more than 15 percent steel, aluminum, or copper by weight. This replaces the previous method that required companies to calculate separate tariffs for metal components and other materials. The administration argues this simplification will reduce compliance burdens without significantly affecting consumer prices. Products made entirely of metal will maintain their 50 percent tariff rate, while industrial equipment will receive temporary relief at 15 percent through 2027.

The pharmaceutical tariffs represent a negotiating tool rather than an immediate revenue generator. Most generic drugs and medications for rare conditions will be exempt, and major drugmakers have already secured exemptions through deals with the administration. The threat of tariffs helped the administration negotiate with 16 pharmaceutical companies, including Eli Lilly and Novo Nordisk, to lower prices and build U.S. factories. With the midterm elections approaching, the administration is positioning these actions as efforts to reduce drug costs for American consumers.