Trump threatens pharmaceutical rates of 200%

President Donald Trump On Tuesday, he threatened to impose up to 200% rates on pharmaceuticals imported into the United States “Soon”.

“They will be very high speed tariffs, like 200%,” Trump said during a cabinet meeting.

But he suggested that these levies would not come into force immediately, saying that “he will give people about a year, a year and a half.”

“We will give them a certain period of time to gather their actions,” Trump said, apparently referring to the drug makers who return the US production

Details of the pharmaceutical tariffs “will come at the end of the month,” commerce secretary Howard Luni told the cabinet meeting.

“With pharmaceuticals and semiconductors, these studies are completed at the end of the month, so the president will determine his policies then and I will let him wait to decide how he will do it,” Luni said.

The president has repeatedly threatened and then changed the rate on tariff proposals, so there is no guarantee that he will determine the pharmaceutical rates of 200%. The pharmaceutical stocks were largely unchanged after Trump’s comments.

In a note on Tuesday, Leerink Partners analyzer David Ryizerger said the message was positive for the industry, “because tariffs will not be applied immediately … And it is unclear whether the administration will follow in the future.”

This is Trump’s most important comment on April pharmaceutical tariffs, when his administration initiated the so-called investigation into Section 232 for these products. This legal authority allows the sales secretary to study the impact of imports on national security.

These planned tariffs will strike a long -awaited pharmaceutical companies, many of which have pushed back and warned that taxes can increase costs, determine investment In the US and violate the drug delivery chain, at risk at risk. Industry is already oriented towards the fall out of Trump Drug pricing policiesFor which drug manufacturers claim to threaten their lower lines and their ability to invest in research and development.

Trump stated that tariffs will encourage medicinal companies to move production operations to the United States Eli Lily., Johnson & Johnson., Abbvie Others are already investing more money in the United States since home production has been drastically contracted in the last few decades.

PHRMA, the largest US lobbying group in the US, repeated a previous statement that goes back to pharmaceutical tariffs.

“Every dollar spent on tariffs is a dollar that cannot be invested in US production or the development of future treatments and patient treatments,” said Alex Sriver, Senior Vice President of Public Affairs for PhRMA.

“The industry is sharing President Trump’s goal to revive US production and has recently announced hundreds of billions of dollars in investment in the United States, but putting on drug tariffs will be counterproductive for these efforts,” he continued. “Medicines have been historically released from tariffs because they can increase costs and lead to shortage.”