Donald Trump takes Massive decision, halts 100 percent tariff on THIS key product, White House issues statement, US president says…
A White House official stated that the process of implementing the tariff will begin, but no new date has been announced.
New Delhi: US President Doland Trump announced that, starting October 1, a 100 percent tariff (import duty) will be applied to all branded and patented medicines imported into the United States. However, there was one condition: if a pharmaceutical company sets up a manufacturing plant in the US, this tariff would not apply. It is important to note that the main purpose of this policy was to pressure drug companies to increase their production within the United States.
According to the reports, the Trump administration has put the plan on hold. A White House official stated that the process of implementing the tariff will begin, but no new date has been announced. This means that while the threat of the tariff still looms, its implementation is being delayed.
The main reason behind keeping the plan on hold is negotiation. Instead of imposing tariffs, the administration wants to make agreements with pharmaceutical companies. This was the result of the deal with Pfizer. Under this deal, Pfizer promised to invest USD 70 billion in the US and reduce prices of some of its drugs. In return, it received a three-year exemption from tariffs. The Trump administration is trying to make similar deals with other companies as well.
If these tariffs are applied in the future, the prices of branded drugs in the U.S. could rise significantly.
Negotiations continue
It appears that the Trump administration is using the threat of tariffs as a weapon to extract promises from pharmaceutical companies for investment in the U.S. and discounts on drug prices.
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