There has been ongoing speculation regarding the future of pharmaceuticals in light of Donald Trump’s significant tariff policy changes.
However, drug products were surprisingly omitted from the 20% tariffs set to be imposed on exports from the EU to the US.
Tánaiste Simon Harris has indicated that the White House may introduce regulations concerning drug products in a forthcoming announcement, possibly within the next few weeks.
Some have suggested that major pharmaceutical companies may have influenced Donald Trump by highlighting the potential negative consequences of imposing tariffs on drug manufacturers.
Additionally, certain goods like steel and aluminium were also excluded from the 20% tariffs due to already facing additional taxes.
Mr. Trump has consistently expressed his desire to see drug manufacturing return to the US from countries like Ireland.
It is widely viewed that Ireland has captured a significant portion of the US pharmaceutical industry over the past few decades.
However, there are approximately 1,500 factories in this sector in the US compared to just 90 here.
It is quite possible that Mr. Trump will implement non-tariff barriers, such as technical regulations, to increase the cost of drug imports, aiming to deter pharmaceutical companies from expanding overseas.
As of now, it remains unclear what measures, if any, will be enforced on drug companies exporting to the US.
Irish pharmaceutical exports to the US amount to €44 billion, representing a substantial share of exports to the US.
Thus, any decision the White House makes will have significant implications for Ireland.
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