US President Donald Trump has announced that he will impose a tax of up to 200% on imported pharmaceuticals, in the context of him continuing to promote a policy of self-reliance in production to reduce dependence on foreign supplies.
Speaking at a cabinet meeting at the White House, Mr. Trump said that pharmaceutical companies will have about 1 year to 1 and a half to adjust their operations, after which imported pharmaceuticals will be taxed at very high levels.
"If they bring drugs to the US, they will be taxed at a very high rate, it could be up to 200%. We will give them some time to rearrange," he said.
President Trump also mentioned plans to impose tariffs on semiconductor products and some other items. While not giving a detailed announcement date, he confirmed that this information will be announced along with a new tax rate for copper of 50%.
The US Commerce Department has launched an investigation into the pharmaceutical industry since April, which looks at whether over-reliance on foreign drugs poses a national security risk. The Trump administration argues that the US needs to increase domestic drug manufacturing capacity to ensure self-supply when needed.
Commerce Secretary Howard Lutnick said details of the taxes will be released later in the month after the studies are complete. "For pharmaceuticals and semiconductors, the reports will be completed by the end of this month, and the president will then make a policy," Mr. Lutnick told the press.
Meanwhile, major pharmaceutical companies warn that high taxes could lead to drug shortages and reduce patients' access to treatment. They have mobilized the government to gradually implement tax policies to reduce the impact and have more time to restructure production.
Pharmaceutical companies emphasize that they have a global production system, and moving the factory to the US will require large resources as well as many years to do so. "Each dollar spent on tariffs is one dollar that cannot be invested in domestic production or researched for new treatments for patients," said a spokesperson for the PhRMA advocacy group, Mr. Alex Schriver.
In terms of market sentiment, the reaction to Mr Trump's statement was relatively stable. Shares of leading pharmaceutical companies such as Pfizer, Merck, Eli Lilly, Bristol Myers and Johnson & Johnson all fell slightly at the cabinet meeting, but then recovered and closed with an increase of 0.3% to 1.4%.
