A 100% tax on imported branded or patented medications will go into effect on October 1st, unless a corporation is constructing a facility in the US, according to a new set of tariffs proposed by US President Donald Trump. The president announced the industry-focused measures, adding that Washington will levy 50% levies on kitchen and bathroom cabinets and 25% import taxes on all heavy-duty vehicles.
Trump stated on his Truth Social platform on Thursday, “The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside Countries,” referring to the necessity of safeguarding American businesses. Despite pleas from American companies for the White House to refrain from enacting additional tariffs, the announcements were made.
However, the introduction of pharmaceutical tariffs was “not quite as big a move as it appears at first sight,” according to Neil Shearing, chief economist at Capital Economics. This resulted from the exemptions granted to generic medications and companies establishing factories in the United States.
“Many of the world’s largest pharmaceutical companies either already have some production in the US or have announced plans to build production in the near future,” he stated. For “urgent discussions” to ensure that Trump’s intentions for new tariffs do not negatively impact patients in the US or the EU, the European Federation of Pharmaceutical Industries and Associations said.
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