US President Donald Trump announced that starting October 1, all patented pharmaceutical products will face 100% tariffs, except for pharmaceutical firms that build and manufacture products in America.
The move is seen as a drastic effort to protect the domestic pharmaceutical industry and force foreign companies to move their operations into the country.
The industry and exporting countries have criticized that such high tariffs could sharply increase the cost of drugs, cause supply disruptions and undermine international investment confidence.
Financial markets also reacted quickly with a surge in bond yields and a decline in global pharmaceutical sector shares as concerns about the impact of disruptions to the drug supply chain.
In subsequent statements, Trump stressed that the action would “restore sovereignty” and “impose fairness on world trade,” raising concerns that this is a sign of a new, harsher tariff war.
In addition, Trump also imposed a 50% tariff on kitchen cabinets, bathroom furniture and related products, as well as a 25% tariff on trucks that will take effect on the same date.
