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Trump’s new tariffs plan raises more questions
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The Big Story
Trump’s new tariffs plan raises more questions
President Trump announced new pharmaceutical tariffs on Thursday, threatening a 100 percent tariff on companies who are not building pharmaceutical manufacturing plants in the U.S. beginning on Oct. 1. But who does that affect?
© AP
On his platform Truth Social, Trump said the rule would only affect a “branded or patented Pharmaceutical Product,” effectively leaving generic medicines untouched. Generic drugs account for the vast majority of prescriptions in the U.S.
Following Trump’s announcement, the administration clarified that the tariff would not supersede the 15 percent tariff trade deal between the U.S. and the European Union reached earlier this year.
“The EU accounts for roughly 70 percent of the U.S.’s roughly $200 billion in annual pharmaceutical imports. Asia accounts for 20 percent of imports, but that includes a significant amount of generics, which is excluded from tariffs,” Arthur Wong, health care managing director at S&P Global Ratings, told The Hill.
It remains unclear whether this rule applies to drugmakers who already have a manufacturing footprint in the U.S., as well as whether companies only need to manufacture one of their drugs on U.S. soil to gain the exemption or if it will be applied case-by-case.
In a rush to get ahead of the situation, multiple companies issued statements touting U.S. investments. AstraZeneca, GSK and Novartis have already pledged billions of dollars in new facilities or research and development in the U.S. this year.
Another federal drug price control policy that exempts generics, the Inflation Reduction Act (IRA), could be impacted by the enforcement of these new tariffs.
The IRA’s Medicare Drug Price Negotiation Program does not apply to medical products that have generics or........
© The Hill
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