Trump warns which essential good will be 'majorly' tariffed next as global taxes begin taking effect
Topics: Donald Trump, News, US News, Tariffs, Health
Gerrard Kaonga
Featured Image Credit: SAUL LOEB/AFP via Getty Images
Topics: Donald Trump, News, US News, Tariffs, Health
Donald Trump has repeatedly defended his already-announced tariffs, and now he's revealed he and his team have plans to unveil new ones.
Donald Trump’s ‘Liberation Day’ announcement of tariffs for countries all over the globe certainly ruffled some feathers.
Many nation leaders have spoken out against the tariffs and have even announced retaliatory measures.
On Wednesday (April 9), the US government finally began collecting tariffs imposed on 90 countries, with a minimum baseline 10 percent tariff on all nations.
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However, in a recent speech, Trump announced that he wasn’t finished and that he had plans to unveil tariffs that would impact the pharmaceutical industry.
Speaking at an event with the National Republican congressional committee, Trump insisted his upcoming tariffs would incentivize drug companies to relocate to the US.
He said: “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.”
In his speech last week on Liberation Day, Trump made clear this was going to be his eventual intention. The only question was when and how hard the industry would be hit.
He said: “The pharmaceutical companies are going to come roaring back. … because if they don't, they've got a big tax to pay.”
However, experts have noted that this might not pan out how Trump hopes.
Emarketer healthcare analyst Rajiv Leventhal remarked that generic drug manufacturers, which account for 90 percent of all of the US’ prescriptions, really might be feeling the pinch.
He emphasized that 47 percent of all generics prescribed in the US are made in India, and the country currently faces a 26 percent tariff.
With this in mind, some companies may have to reconsider whether the American market is even worth the extra cost, which could ultimately hurt the American consumers who rely on those low-cost alternatives to brand-name drugs, for everything from antibiotics like penicillin to blood pressure medication.
He said: “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.”