Donald Trump burst the tariff bomb, imposed 100 percent tariff on pharma industry, India’s tension increased

Donald Trump Impose Tariffs on Pharma Industry: US President Donald Trump has ordered to impose new tariffs on foreign medicines and metals on Thursday, April 3. This move is believed to be part of his strategy to pursue his trade agenda. The special thing is that this announcement was made exactly one year after ‘Liberation Day’, when Trump started a trade war with almost all the major trading partner countries.

Donald Trump’s new tariff on medicines

According to Trump’s order, 100 percent tariff will be imposed on patented medicines made abroad. These tariffs will remain in place unless countries get lower rates by signing new trade agreements with the US, or unless companies promise to set up factories in the US.

• Big companies have been given 120 days to bring production back to America (reshoring).
• Small companies will get 180 days time.
• The tariffs on companies that promise to set up factories in America will be 20% instead of 100%.
• The European Union, Japan, South Korea and Switzerland are excluded from the scheme because they already have trade agreements with them; 15 percent pharma tariff is already applicable on these.
• Companies that enter into a “Most Favored Nation” agreement with the Trump government and build factories in the US may be exempted from stringent tariffs.

Impact of new tariff on India?

The new tariffs implemented by Donald Trump are likely to have a serious impact on India. India, which is known as the pharma hub of the world, produces many foreign pharmaceutical companies including the US. Due to the new tariff, the prices of medicines made in India will increase compared to before, which will have a negative impact on the country’s pharma industry.

Medicines manufactured in India will be affected by the new tariff (Source- Social Media)

25 percent tariff on metals also

Now 25 percent tariff will be imposed on finished products containing large quantities of steel, aluminum and copper. Earlier the tariff was imposed only according to the quantity of metal. This change may increase the possibility of products becoming more expensive for consumers.

Also read- Donald Trump issued threat by blowing up Iran’s biggest bridge, said- compromise otherwise the situation may worsen.

US Supreme Court had banned

The US Supreme Court struck down the global tariffs in February, but Donald Trump has tried to reimpose the tariffs using different legal powers.