Trump signs order, may impose up to 100% tariff on foreign drugs in US

Washington (The Uttam Hindu): Donald Trump on Thursday issued a new executive order, under which a provision has been made to impose import duty (tariff) up to 100% on foreign medicines.

According to this order, drugs that do not have special pricing agreements with US companies or are not produced in the US could be subject to higher tariffs. However, companies that are setting up production facilities in the US and have pricing agreements in place will be exempt from the tariffs.

Companies that have begun production in the US but haven't yet reached a price agreement will face a 20% tariff, which could rise to 100% over the next four years. The administration has given companies 120 to 180 days to negotiate.

Trump described this move as related to national security and said that it is necessary to reduce dependence on foreign medicines and their raw materials.

However, the decision has also drawn criticism. PhRMA CEO Stephen J. Ubl has warned that this could lead to higher drug prices and deter investment. He points out that biopharmaceutical production in the US is already robust and most drugs are imported from trusted countries.

The Trump administration has also tightened tariff policies on metal imports, including steel, aluminum and copper. These metals and products made from them will now be subject to tariffs of up to 50%. Products with less than 15% metal content will be subject to country-specific tariffs, while products with higher metal content will be subject to a 25% tariff.

The US Supreme Court struck down some old tariffs in February. Following this, the Trump administration has continued its tough trade policy through sector-specific and product-specific tariffs.

Trump says these measures will reduce the trade deficit, boost domestic production and strengthen American companies. However, experts believe they could also impact global supply chains and consumer prices.