Trump's U-Turn: The Impact of Pharmaceutical Tariffs on Global Supply
President Trump announced his intent to impose tariffs on imported pharmaceuticals and semiconductors, which may reach 200%. This move aims to boost U.S. manufacturing, but has faced criticism from drugmakers fearing shortages and accessibility issues. The Commerce Department is investigating these tariffs as a potential national security measure.
In a bold move, President Donald Trump announced plans to impose tariffs on imported pharmaceuticals and semiconductors, potentially reaching 200%, as part of measures to bolster domestic manufacturing. Speaking at a White House Cabinet meeting, Trump emphasized giving drugmakers a grace period of up to a year and a half to adapt before enforcing the hefty tariffs.
Highlighting national security concerns, the Trump administration launched an investigation into the pharmaceutical industry's reliance on foreign production back in April. The Commerce Department, responsible for the investigation, is expected to release its report by the month's end, as confirmed by Commerce Secretary Howard Lutnick.
Despite industry pushback citing potential drug shortages and reduced patient access, Trump remains steadfast on the tariffs, arguing for increased U.S. production to lessen dependency on foreign medicine supplies. Drugmakers have expressed the challenges of shifting global manufacturing operations to the U.S., due to the extensive resources and time required.
(With inputs from agencies.)
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