US President Donald Trump said on Friday that he would soon announce new tariffs targeting the pharmaceutical industry. However, he did not respond when asked whether life-saving medications would be exempt or what the exact tariff rates would be.
“It’ll be a certain number that will be enough to get the drugs and the pharmaceutical companies to bring in their product into our country. We never want to have to rely on other countries for that, like we did in Covid,” Trump told reporters aboard Air Force One.
He further said that while he is open to negotiating tariffs, any discussions would take place only after his administration announces reciprocal tariffs on April 2.
“They want to make deals. It’s possible if we can get something for the deal. “I’m certainly open to that. If we can do something where we get something for it,” Trump further said, adding that countries like Britain have approached the US to cut deals and ward off reciprocal tariffs.
Amid this, some drugmakers have been sending medicines via air to the US as they fear that Trump’s April 2 announcement could include pharma products manufactured in Europe, Reuters reported.
While pharmaceuticals have traditionally been exempt from tariffs, Trump’s push to raise levies on Chinese goods, including raw drug ingredients and finished medicines, has fueled speculation that the exemption may no longer hold. During his campaign for the November election, Trump repeatedly said that he would impose universal import tariffs.
Trump’s America First approach
Trump, in his first joint session of the US Congress, announced reciprocal tariffs and reinforced his “America First” approach. He also pointed to India’s high tariff rates.
“India charges us 100 per cent tariffs; the system is not fair to the US, it never was. On April 2, reciprocal tariffs kick in. Whatever they tax us, we will tax them. If they use non-monetary tariffs to keep us out of their market, then we will use non-monetary barriers to keep them out of our market,” Trump said while addressing his first joint session of the US Congress.
What are reciprocal tariffs?
Reciprocal tariffs are those where countries impose tariffs on imports that mirror or respond to the tariffs imposed by another country. It is often used in trade negotiations or disputes to ensure a level playing field between two nations.
This week, Trump announced a 25 per cent tariff on automobiles and clarified that it would be in addition to existing country-specific tariffs.
“April 2nd is Liberation Day in America! For decades, we have been ripped off and abused by every nation in the World, both friend and foe. Now, it is finally time for the Good Ol’ USA to get some of that money and respect back. God bless America!” Trump said on Truth Social last week.