President Donald Trump revealed Tuesday he plans to put tariffs on pharmaceutical products, which will start at a lower duty but rise to 150 percent and 250 percent 12 to 18 months from now.
The effort aims to bring pharmaceutical production into the United States, Trump said during an interview with CNBC’s Squawk Box.
After noting the United States has a $41 billion trade deficit with Switzerland, CNBC’s Becky Quick said, “pharmaceuticals are a big issue with Switzerland.”
“They make a fortune with pharmaceuticals, and they make our pharmaceuticals in China, and Ireland, and everything else,” Trump responded, before noting tariffs were coming in “the next week or so.”
“We’ll be putting a initially small tariff on pharmaceuticals, but in one year, one and a half years maximum, it’s going to go to 150 percent and then it’s going to go to 250 percent because we want pharmaceuticals made in our country,” he went on to say.
In his response, Trump also foreshadowed tariffs on semiconductors.
“We’re going to be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States. And by the way, they’re being made in the United States,” he said, touting that Taiwan Semiconductor Manufacturing Company’s (TSMC) massive investment in Arizona.
Trump’s announcement of forthcoming pharmaceutical tariffs comes two days after he said there would be a substantial drop in pharmaceutical drug prices when Breitbart News asked what advice he had for Republicans on Capitol Hill during a press gaggle in Allentown, Pennsylvania, on Sunday night.
“Well, one of the things they’re going to be talking about pretty soon are the tremendous drop in drug prices. You know, we’ve cut drug prices by 1,200, 1,300, 1,400, 1,500 percent. I don’t mean 50 percent, I mean 1,400-1,500 percent, because we’re going Favored Nations,” he said.
“We want the same price as Europe gets. We want the same price as other country gets. And over the years, 25-30 years ago, it started where they were charging us much more,” he added.
He also highlighted the letters he sent out to various drug companies last week, demanding they lower their prices.
“So I think that’s going to be a point. I don’t know how anybody could win an election if they’re on the other side of that issue,” he said.
Be the first to comment