Donald Trump has consistently stood by his tariff policies, and he has now disclosed plans for additional tariffs.
Trump’s ‘Liberation Day’ announcement regarding tariffs targeting countries worldwide has sparked significant controversy.
Several global leaders have expressed their disapproval and have even proposed countermeasures.
On Wednesday, April 9, the US began enforcing tariffs on 90 countries, implementing a standard 10 percent tariff as a starting point.
In a recent address, Trump mentioned forthcoming tariffs aimed at the pharmaceutical sector.
Addressing the National Republican Congressional Committee, Trump argued that the new tariffs would entice pharmaceutical firms to return to the US.
He stated: “We’re going to tariff our pharmaceuticals and once we do that they’re going to come rushing back into our country because we’re the big market.
“So we’re going to be announcing very shortly a major tariff on pharmaceuticals and when they hear that, they will leave China, they will leave other places because they have to – most of their product is sold here and they’re going to be opening up their plants all over our country.”
He previously outlined this objective during his Liberation Day speech, discussing the potential impact on the industry.
He said: “The pharmaceutical companies are going to come roaring back. … because if they don’t, they’ve got a big tax to pay.”
Nevertheless, some experts caution that the outcome may not align with Trump’s intentions.
Rajiv Leventhal, a healthcare analyst at Emarketer, pointed out that generic drug producers, responsible for 90 percent of US prescriptions, could face significant challenges.
He highlighted that 47% of generics used in the US are manufactured in India, which is currently subject to a 26 percent tariff.
This situation might lead companies to reassess their participation in the US market, potentially disadvantaging American consumers who depend on affordable generic medications for various health needs.
He stated: “Most of them are selling with low profit margins and some are operating at a loss.
“They could be forced to consider whether it’s even worth it to be in the market.”