For weeks, there has been ongoing speculation regarding the fate of pharmaceuticals within Donald Trump’s extensive tariff policy overhaul.
Surprisingly, drug products were omitted from the 20% taxes set to be enforced on exports from the EU to the US.
Tánaiste Simon Harris has indicated that the White House might announce measures affecting drug products separately, potentially within the coming weeks.
Some have suggested that major pharmaceutical companies may have influenced Donald Trump, cautioning him about the possible negative impacts of imposing tariffs on drug manufacturers.
During a brief interaction with the media last night, Donald Trump hinted that pharmaceutical policies would be forthcoming.
He remarked: “We are examining pharma… as a distinct category and we will be making an announcement in the near future, not too far off.”
Additionally, other items such as steel and aluminum were also exempt from the 20% tariffs, as they are already subject to additional taxes.
Mr. Trump has consistently expressed his desire to see drug manufacturing return to the US from nations like Ireland.
There is a perception that Ireland has attracted a significant portion of the US pharmaceutical industry over the past few decades.
Nonetheless, there are 1,500 factories in the pharmaceutical sector within the US, compared to just 90 in Ireland.
It is quite possible that Mr. Trump will implement non-tariff barriers, such as technical regulations, that could raise the costs of drug imports to deter pharmaceutical companies from expanding their operations overseas.
Currently, it remains unclear what specific measures, if any, will be taken against drug companies exporting to the US.
Irish pharmaceutical exports to the US total €44 billion, representing a significant segment of the overall exports to the US.
Therefore, any decision made by the White House will have considerable implications for Ireland.
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