Key Highlights:
- Trump proposes escalating tariffs (up to 250%) on imported pharmaceuticals to push US drug production.
- New semiconductor tariffs expected soon, continuing Trump’s aggressive trade policies.
- India faces fresh criticism from Trump over Russian oil trade, sparking diplomatic tensions.
Trump Unveils Sweeping Tariffs on Foreign Pharmaceuticals to Revive US Manufacturing
In a bold move to bring pharmaceutical production back to American soil, former President Donald Trump has proposed imposing tariffs as high as 250% on imported drugs. Speaking to CNBC on Tuesday, Trump revealed that the tariffs would start at a lower rate before escalating dramatically within the next 18 months.
*”We’ll begin with a modest tariff on pharmaceuticals, but within a year to a year-and-a-half, it will jump to 150%, then eventually 250%,”* Trump declared. “We want these drugs made in our country, not overseas.”
The announcement signals Trump’s latest push to reshore critical industries, a key theme of his economic agenda. Alongside pharma, he also confirmed plans to introduce tariffs on foreign-made semiconductors and chips in the coming days, though specifics remain undisclosed.
A Hardline Trade Stance: Pharma, Chips, and India in Focus
Trump’s aggressive tariff strategy comes amid growing tensions over global trade imbalances. The former president has long criticized the US pharmaceutical industry’s reliance on foreign suppliers, particularly from China and India, and has threatened punitive measures unless production shifts stateside.
But the trade friction doesn’t stop there. Just one day before the pharma tariff announcement, Trump took aim at India, vowing to “substantially increase” tariffs on the country within 24 hours. He accused New Delhi of profiting from Russian oil resales, alleging that India’s purchases indirectly fund Moscow’s military operations.
“They buy massive amounts of Russian oil, refine it, and sell it at a markup,” Trump claimed. “That money helps fuel the war machine.”
India and Russia Push Back
India swiftly rejected Trump’s accusations, calling them “unjustified and unreasonable.” The Ministry of External Affairs asserted that India would defend its economic interests, emphasizing its right to engage in independent trade relations.
Meanwhile, the Kremlin backed India’s stance, with spokesperson Dmitri Peskov stating that “sovereign nations must decide their own trade policies without external pressure.”
What’s Next?
With Trump doubling down on protectionist trade policies, the global economic landscape could face significant disruptions. Pharmaceutical companies may soon confront skyrocketing costs for imports, while tech firms brace for semiconductor tariffs. Meanwhile, the escalating rhetoric with India suggests further trade battles could be on the horizon.
Will these measures succeed in revitalizing US manufacturing, or will they spark retaliatory actions from trading partners? The coming months will be critical in shaping the answer.
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