Another blow to India: US imposes 100% tariff on medicine imports
Washington ( Web News )
US President Donald Trump has announced the imposition of a 100% tariff on medicine imports, while a 25% tax has been levied on heavy-duty trucks, which will come into effect next week. According to Indian TV channel NDTV, India’s pharmaceutical industry is heavily dependent on trade with the US, and this decision could significantly affect drug manufacturing.
According to British news agency Reuters, the US has previously imposed high tariffs of up to 50% on trade partners and additional specific taxes on imported products such as steel. This latest step is seen as another major shock to global business, which is already struggling with disrupted supply chains, rising costs, and consumer uncertainty caused by Trump’s trade wars.
These measures have negatively impacted global growth. According to the Federal Reserve, they are also contributing to higher costs for US consumers. Trump, however, maintains that these steps are intended to protect US manufacturing and national security.
BMO Economics noted in a briefing that following this announcement, Asian stock markets saw a decline, particularly in pharmaceutical companies’ shares. However, European stocks recovered from initial losses as uncertainty remained over how broadly these tariffs would be implemented. It was further noted that mixed US equity futures suggest investors are largely ignoring Trump’s latest tariff announcement.
The report added that Trump’s announcement on Truth Social did not clarify whether these new taxes would be in addition to existing national tariffs. In recent trade agreements with Japan, the European Union, and the UK, tariff limits were set on specific products such as pharmaceuticals.
In an informal preliminary trade agreement between the EU and the US, a maximum tariff cap of 15% was agreed upon. However, Trump has not yet signed any executive order to ratify this agreement. The European Commission stated on Friday that the deal clearly sets an overall tariff cap at 15%.
Japan’s trade negotiator, Ryoichi Akazawa, said that under Japan’s agreement, its tariff rates would not exceed those applied to the EU and other countries.
Trump further clarified that the 100% tariff on medicines would apply only to those companies that have not yet begun constructing manufacturing plants in the US. Several pharmaceutical companies have already announced multi-billion-dollar investments in America. Switzerland’s Roche stressed that one of its US units recently began work on a new factory. Similarly, Novartis, which has also pledged major investments in the US, declined to comment when asked.