US President Donald Trump has announced that his administration could begin imposing tariffs on pharmaceutical imports by the end of the month. He specified that tariffs on semiconductors are also likely to be imposed in a similar timeframe.
According to Yonhap News Agency, the Trump administration will impose tariffs on pharmaceuticals in a phased manner. Speaking to the media after an event in Pittsburgh, the President said, “We will start with a small tariff from next month and give pharmaceutical companies about a year to ramp up production. After that we will impose higher tariffs.”
He also said the process for imposing tariffs on semiconductors would be similar, which he considered “less complex.” According to Commerce Secretary Howard Lutnick, the administration will complete national security investigations of semiconductor and pharmaceutical imports by the end of this month.
The investigation was initiated in April under Section 232 of the Trade Expansion Act of 1962. Under this provision, the President has the authority to control imports that are considered a threat to national security.
At a cabinet meeting, Trump also announced plans to impose a 50 percent tariff on copper. He believes that tariffs of up to 200 percent could be imposed on pharmaceuticals, after giving companies a year to set up manufacturing units in the US. Trump argues that excessive amounts of foreign imports are posing a risk to America’s national security.