Pharmaceutical tariffs could reach 200%, says US President
US President Donald Trump has said he is planning to announce tariffs on imported semiconductor and pharmaceuticals, saying the rate for medicines could reach 200% but that he would give drugmakers about one year “to get their act together”.
“We’re going to give people about a year, a year and a half to come in and, after that, they’re going to be tariffed,” Mr Trump told reporters, speaking at a meeting of his Cabinet at the White House.
“If they have to bring the pharmaceuticals into the country … they’re going to be tariffed at a very, very high rate, like 200%. We’ll give them a certain period of time to get their act together,” he said.
Mr Trump also said he is probably two days off from sending the European Union a letter disclosing the tariff rate on their exports to the US.
President Trump said that the EU had been treating the US very nicely recently in trade talks.
“They’re very tough, but now they’re being very nice to us, and we’ll see what happens,” he said.
“We are talking to them,” Mr Trump added.
He this week again delayed their reimposition, pushing it back to 1 August.
President Trump insisted that there would be no further delay in these steeper tariffs.
He added that the levies would start being paid on 1 August, in line with letters now being sent out to trading partners.
“No extensions will be granted,” he posted on Truth Social. “There will be no change.”
Earlier, Tánaiste and Minister for Foreign Affairs Simon Harris said that the three-week extension for the trade deal negotiation was a “clear indication” that Mr Trump “understands there is a need for trade”.
Speaking ahead of a Cabinet meeting, Mr Harris said he remains concerned about the pharmaceutical industry, and that there’s a “lot of work to be done”.
While Mr Trump imposed a sweeping 10% tariff on goods from almost all trading partners in April, higher rates customised to dozens of economies were unveiled, then halted until 9 July.
Last night, Mr Trump had told reporters at a dinner that the 1 August deadline was “firm, but not 100 percent firm”.
Pressed on whether the letters marked his final offers, he replied: “I would say final — but if they call with a different offer, and I like it, then we’ll do it.”
In a push for further trade deals, Mr Trump sent letters to more than a dozen partners, including key US allies Japan and South Korea.
Products from both countries would be hit with 25% duties, Mr Trump wrote in near-identical documents to leaders in Tokyo and Seoul.
Indonesia, Bangladesh, Thailand, South Africa and Malaysia were among other countries facing duties ranging from 25% to 40%.
Most countries receiving the letters so far saw US tariffs at similar or unchanged rates from those threatened in April, although some like Laos and Cambodia, received notably lower levels.
In his messages to foreign leaders, Mr Trump warned of further escalation if there was retaliation against his levies.
At the cabinet meeting, he insisted that “big money will start coming in on August 1”.
US Treasury Secretary Scott Bessent added at the meeting that tariff income could exceed $300 billion by year-end.
The Trump administration is under pressure to show results after promising a flurry of deals following the US president’s tariff threats.
So far, the US has only struck two pacts, with the UK and Vietnam, besides an agreement to dial back staggeringly high tit-for-tat levies with China.
And US talks with the UK are still ongoing over steel and aluminium duties.
Mr Trump recently doubled US tariffs on imports of both metals to 50% while exempting the UK from this increase.
However, the US could double the levy on UK steel and aluminium too, starting tomorrow, if it determined that the UK had not complied with terms of their earlier deal.
In threatening tariff hikes on various economies, Mr Trump cited in his letters a lack of reciprocity in trading ties.
He also warned that goods transshipped to avoid higher duties would be subjected to steeper levels.
But Mr Trump added that if countries were willing to adjust their trade policies, the US “will, perhaps, consider an adjustment to this letter”.
He said that tariffs could be modified “upward or downward, depending on our relationship with your country”.
Article Source – Pharmaceutical tariffs could reach 200%, says US President – RTE