Trump says US will soon announce tariffs on pharmaceutical imports

Speaking to an event at the National Republican Congressional Committee, Trump said the tariff will incentivise drug companies to move their operations to the US.

US President Donald Trump continues to be belligerent on his policy of reciprocal Tariffs despite strong opposition both within the US and outside. On Tuesday night (local time), the US President announced that Tariffs on the Pharma sector were coming soon. The sector has so far been exempt from the Tariffs. 

Speaking at the National Republican Congressional Committee dinner, Trump said, "Tariffs on pharma will be there because we don't make our own pharma drugs; they are made in another country. The same packet in the US is priced at USD 10 or more. We are going to tariff pharma in such a way that companies will come rushing to us very soon. The advantage we have is, we are very big market. Very shortly, will announce a major tariff on pharma, and when these companies hear that, they will leave China and other countries because most of their products are sold here. And they will be opening their plants here," Trump said.  Indian generic drug manufacturers play a significant role in the US healthcare system, supplying nearly 40 percent of the generic drugs imported into the country. In FY24, Indian pharmaceutical exports to the US were valued at approximately USD 8 billion, with the industry witnessing an 8 percent compound annual growth rate (CAGR) over FY15- 24. He said, "I'm telling you- these countries are calling us up...They are dying to make a deal- 'please sir make a deal, I'll do anything, I'll do anything sir'." He added that although some 'rebel' Republicans argue that he must allow Congress to make a deal, he believed that if that were the case, China wouldn't have been slapped with 104 percent tariffs, and vice versa.