US to initially impose 'small tariff' on pharma imports, Trump says
"In one year, one and a half years maximum, it's going to go to 150 per cent and then it's going to go to 250 per cent because we want pharmaceuticals made in our country," Trump told CNBC in an interview.
He did not specify the initial tariff rate, though he previously suggested in February that pharmaceutical and semiconductor tariffs would start at "25 per cent or higher", with substantial increases over the course of a year. Last month, he said tariffs on pharmaceutical imports could rise as high as 200 per cent.
CHIP TARIFFS PLANNED NEXT
Trump also said on Tuesday he plans to announce tariffs on semiconductors and chips in the 'next week or so,' but did not provide further details.
The United States has been conducting a national security review of the pharmaceutical sector, and the industry has been bracing for the possibility of sector-specific tariffs. The administration has not announced when the results of that investigation will be released.
DRUGMAKERS BOOST US INVESTMENTS
Several pharmaceutical companies have pledged multibillion-dollar investments in US manufacturing as Trump continues to threaten import duties. AstraZeneca recently committed US$50 billion to expanding its operations in the United States.
PhRMA, the main lobbying group for the pharmaceutical industry, did not immediately respond to a request for comment.
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Business Times
39 minutes ago
- Business Times
Has Trump won the trade wars?
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The escalation reached unprecedented levels as Beijing responded to Trump's moves with retaliatory tariffs at 125 per cent on certain goods in April. Yet, there have also been attempts at de-escalation. In mid-May, the Trump administration reached an agreement with China to lower tariffs dramatically and open some markets that both sides had closed off as tensions rose. Tariffs on Chinese imports fell to 35 per cent from 145 per cent. Whether the temporary trade truce will be extended beyond Aug 12 remains unclear even after recent talks in Stockholm last week. In separate trade deals with Japan and the European Union (EU), the Trump administration secured significant concessions from its partners without offering equivalent ones in return. 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Meanwhile, the economic costs of sustained trade conflict continue to accumulate. China's retaliatory capacity and economic resilience have also proven greater than many initially anticipated, while US businesses and consumers bear the burden of higher prices and economic uncertainty. The temporary truces and agreements reached so far suggest that both sides recognise the need for de-escalation, but fundamental disagreements remain unresolved. While the tariffs have achieved some tactical objectives, like generating revenue and forcing periodic negotiations, they have largely failed to deliver on their primary strategic promises of manufacturing revival and trade balance improvement. The economic costs have been substantial and measurable, while the benefits remain largely theoretical or temporary. Most significantly, the trade war has not reversed the long-term decline in American manufacturing employment or meaningfully reduced trade deficits. 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Straits Times
an hour ago
- Straits Times
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Straits Times
an hour ago
- Straits Times
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