New tariffs on copper and pharmaceuticals amid push to reshore manufacturing

Tariff increases on copper and pharmaceuticals

Although the U.S. has domestic copper production, the country imported approximately $17 billion worth of copper in 2024, according to the Department of Commerce. The leading suppliers were Chile, Canada, Peru, and Mexico.

In February, Trump ordered an investigation into copper imports under Section 232, a legal provision that allows the president to impose higher tariffs on the grounds of national security.

Experts warn that these tariffs could drive up prices for American consumers, as copper is a key component in electronics, machinery, and the automotive industry. Since the announcement, copper prices have surged to historic highs. Copper futures in New York rose by as much as 15%, reaching a record $5.68 per pound, according to CNN.

In addition to copper, President Trump also announced his intention to impose a 200% tariff on imported pharmaceutical products, although he acknowledged that the measure may take time to go into effect. During his previous administration, Trump exempted medicines from tariffs; however, he now aims to bring pharmaceutical production back to the U.S. through elevated import duties.

Several drug manufacturers have announced plans to expand their operations in the United States, although some of these initiatives were already underway before Trump took office in January.