Washington: The U.S. President Donald Trump's administration announced significant changes to trade policy on Wednesday, introducing a 50 percent tariff on steel, aluminum, and copper imports. These tariffs will be assessed based on the "full value" paid by U.S. customers, rather than "artificially low" foreign prices, according to government officials.

According to Yonhap News Agency, the administration also outlined plans to adjust tariffs on derivative metal products. No additional duties will be levied on products with less than 15 percent steel, aluminum, or copper by weight. However, a 25 percent tariff will be imposed on products exceeding that threshold. These adjustments are scheduled to take effect at 12:01 a.m. on Monday, as per a proclamation signed by Trump.

The White House cited national security concerns as the primary reason for these changes, stating that the tariffs aim to address threats posed by metal imports. The administration suspects that some foreign exporters may be manipulating prices to lower tariff payments.

In a separate move, Trump signed a proclamation to impose a 100 percent tariff on patented pharmaceuticals not manufactured in the U.S. or lacking a most-favored-nation (MFN) pricing agreement. However, countries like South Korea, Japan, Switzerland, and the European Union are exempt from this due to existing trade agreements.

Exceptions to the pharmaceutical tariff include a reduction to 20 percent for companies building a manufacturing plant in the U.S., with the potential for a zero tariff if an MFN agreement is in place. Large companies have 120 days to announce plans to reshore operations, while smaller firms have 180 days.

Addressing concerns about affordability, a senior official stated that the derivative metal tariffs would not impact consumer prices. Both metal and pharmaceutical tariffs are enacted under Section 232 of the Trade Expansion Act of 1962, which permits the president to adjust imports threatening national security.