Washington: The U.S. President Donald Trump's administration announced significant changes to tariff policies, including a 50 percent tariff on steel, aluminum, and copper imports. These tariffs will be based on the "full value" paid by U.S. customers rather than on lower foreign prices. Additionally, adjustments will be made to tariffs on derivative metal products, with no additional duties on products containing less than 15 percent of these metals, while a 25 percent tariff will apply to those exceeding that threshold.

According to Yonhap News Agency, the adjustments are set to take effect at 12:01 a.m. on Monday (Washington time), following a proclamation signed by Trump. The White House stated that these changes aim to strengthen metal tariffs to counteract national security threats posed by such imports. The proclamation seeks to address potential foreign price manipulation that might reduce tariff payments.

During an online briefing, a senior U.S. official explained that the adjustments are intended to simplify the duty calculation process for derivative metal products. The current method of assessing duties based on metal content value will be replaced with a straightforward 25 percent tariff on products with substantial metal content. This change is expected to impact Korean exporters of goods like washing machines and refrigerators.

In addition to metal tariffs, Trump signed a separate document imposing a 100 percent tariff on patented pharmaceuticals not manufactured in the U.S. and lacking a most-favored-nation pricing agreement. However, countries such as South Korea, Japan, Switzerland, and the European Union are exempt due to existing trade agreements.

Exceptions to the pharmaceutical tariff include reductions for companies building manufacturing plants in the U.S., with potential tariffs as low as zero for those with an MFN agreement. Larger companies have 120 days to announce reshoring plans, while smaller firms have 180 days.

The administration dismissed concerns about affordability impacts on American consumers, stating that these tariffs would not affect product prices. Both metal and pharmaceutical tariffs are enacted under Section 232 of the Trade Expansion Act of 1962, allowing the president to adjust imports threatening national security.