The surtax on pharmaceutical products aims to accelerate the establishment of factories in the United States and could reach up to 100%, but 15% for countries or territories like the European Union, Japan, or South Korea, which have a trade agreement with Washington.
Steel, aluminum, or copper
At the same time, the overhaul of tariffs imposed on metals aims to counteract the practices of companies seeking to “artificially manipulate” the prices of their production to sell them at lower prices in the United States, according to the White House. Specifically, finished products containing a significant amount of steel, aluminum, or copper will also be affected by the 25% imposed on these metals, in proportion to the quantity they contain.
The new rules regarding metals will take effect as of Monday, while tariffs on pharmaceutical products will become reality within 120 to 180 days, depending on the size of the company, as confirmed by the White House. “Our goal is for the majority of licensed pharmaceutical products to be manufactured in the United States,” a US official assured the press.
Companies that commit to setting up factories in the United States will only be subject to 20% tariffs on their drugs by the end of Donald Trump’s term, while their production lines in the country are being built. As for those that would apply the prices of “the most favored nation” to their drugs sold in the United States and commit to setting up factories there, they will simply be exempt from tariffs.
No impact on prices
His decree regarding metals stems from his desire to impose specific rules, particularly on foreign companies to pay lower tariffs on the purchase value of American products. “It’s simply a matter of simplification and fairness,” assured this official, who also believes that there should be no consequences on prices for consumers.
Just a year ago, on what he presented as “liberation day,” the American president announced a series of tariffs applied to all products entering the United States, with the intention of balancing the trade balance of the world’s largest economy.
