Trump Speaks at Republican Fundraising Dinner
Announces Plan for Major Tariffs on Pharmaceuticals
Stresses U.S. Market Power as Leverage for Policy
President Donald Trump is giving a speech at the Republican House members' fundraising dinner on the 8th (local time). Photo by Reuters Yonhap News
As the United States announced reciprocal tariffs starting at midnight on the 9th (local time), President Donald Trump indicated plans to soon impose tariffs on pharmaceuticals, which had been temporarily excluded under the 'exception' measures.
According to Bloomberg News, President Trump stated at a Republican House members' fundraising dinner on the 8th, "We will soon announce large-scale tariffs on pharmaceuticals." However, he did not provide specific details.
President Trump explained, "If we do that, they will flock back to the United States," adding, "Because we are a 'big market'." He also emphasized, "Our greatest advantage is that we are the world's largest market."
President Trump has long pointed out the shortage of domestic pharmaceutical production in the U.S. as a problem and hinted at the possibility of imposing tariffs. The Trump administration is expected to utilize 'Section 232,' although a formal investigation has not yet been initiated.
On the 24th of last month, President Trump also said, "We will announce something about pharmaceuticals soon," adding, "We no longer produce pharmaceuticals. Steel and pharmaceuticals are essential when war-like situations arise."
Traditionally, pharmaceuticals have been excluded from tariffs to protect patients' access to essential medicines, but there is a prevailing view that this time will be different. Global pharmaceutical companies have also become active. According to the U.S. Wall Street Journal (WSJ), global pharmaceutical companies argue that "these tariffs will harm patients and suppress research and development (R&D) investment." According to PwC analysis, annual tariffs imposed on the pharmaceutical and medical device sectors are expected to increase from the current approximately $500 million to up to $63 billion, a 126-fold increase.
Meanwhile, the Trump administration is implementing item-specific tariff policies following universal tariffs. Previously, 25% tariffs were imposed by industry on steel, aluminum, and automobiles, and tariff measures related to copper are also being prepared. In the reciprocal tariff announcement on the 2nd, industries temporarily excluded under the 'exception' included pharmaceuticals, lumber, and semiconductors.
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