Trump threatens to impose 200% tariffs on – Business News
President Donald Trump threatened tariffs of up to 200% on prescription drugs imported into the United States — however added that the levies wouldn’t seemingly be imposed for a yr or more.
“They’re going to be tariffs at very high rate, like 200%,” Trump stated during a Cabinet assembly on Tuesday. However, he indicated there can be a delay earlier than the tariffs are applied.
“We’ll give them a certain period of time to get their act together,” he stated, suggesting a timeline of “about a year, year-and-a-half.”
President Donald Trump on Tuesday threatened to impose tariffs of up to 200% on prescription drugs imported into the United States. REUTERS
Commerce Secretary Howard Lutnick informed CNBC that more particulars shall be launched on the finish of the month.
“With pharmaceuticals and semiconductors, those studies are being completed at the end of the month, and so the president will then set his policies then, and I’m going to let him wait to decide how he’s going to do it,” Lutnick stated.
The proposed tariffs mark Trump’s most direct feedback on pharmaceutical imports since April, when his administration launched a Section 232 investigation into the national security implications of drug imports.
That legal provision permits the Commerce Department to advocate commerce measures primarily based on import-related security considerations.
Trump has beforehand threatened high tariffs earlier than reversing course, and it stays unsure whether or not the proposed 200% charge will finally be enacted.
Pharmaceutical shares had been largely unchanged following the announcement.
“They’re going to be tariffs at very high rate, like 200%,” Trump stated during a Cabinet assembly. REUTERS
In a notice Tuesday, Leerink Partners analyst David Risinger known as the announcement “positive for the industry” due to the delay in implementation and the uncertainty surrounding follow-through.
The pharmaceutical industry has warned that tariffs may increase drug prices, scale back investment, and disrupt the provision chain.
“Every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or the development of future treatments and cures for patients,” Alex Schriver, senior vice president of public affairs for PhRMA, informed CNBC.
The Trump administration is set to impose some of the very best tariffs in fashionable historical past on a big selection of trading companions beginning Aug. 1. REUTERS
“The industry shares President Trump’s goal of revitalizing American manufacturing and has recently announced hundreds of billions of dollars in US investment, but placing tariffs on medicines would be counterproductive to these efforts,” Schriver continued.
“Medicines have historically been exempt from tariffs because they can increase costs and lead to shortages.”
Trump has argued that tariffs will encourage drugmakers to transfer manufacturing back to the US, noting that corporations like Eli Lilly, Johnson & Johnson and AbbVie have already elevated home investment following many years of industry offshoring.
The Trump administration is set to impose some of the very best tariffs in fashionable historical past on a big selection of trading companions beginning Aug. 1 — until new commerce agreements are reached. The measures are already raising client costs and creating international financial uncertainty.
Trump introduced that at the least seven international locations would obtain new tariff notifications on Wednesday, with more to observe.
Earlier this week, 14 international locations—together with Japan, South Korea, Malaysia, Bangladesh and others obtained letters warning of new tariffs if they don’t attain commerce offers with the US by the new Aug. 1 deadline. Trump has acknowledged there shall be no additional extensions to this date
