look news india
Washington: US President Donald Trump has signed a new Executive Order to aggressively implement the “America First” policy in the pharmaceutical sector. Under this historic decision those foreign pharmaceutical companies Tariff up to 100 percent may be imposed, which will fail to reach a ‘Most Favored Nation’ (MFN) pricing deal with the Trump administration. The move is directly aimed at reducing drug prices and bringing production back to American soil.
What is Trump’s ‘Most Favored Nation’ formula?
The Trump administration wants drug companies to charge American consumers the same minimum prices they charge in other developed countries. The main points of the new order are as follows:
Zero Tariff: There will be no tax on those companies which will sign ‘MFN’ deals and start production of medicines and their raw materials in America.
20% to 100% tariff: Companies that have not made a pricing deal but are setting up their factories in the US will initially face a 20% tariff, which will increase to 100% in 4 years.
direct hit: Companies that neither reduce prices nor produce in America will have to pay a hefty 100% tax to survive in the American market.
Companies have last chance to meet ‘deadline’
According to the Associated Press, the Trump administration has given companies some time to recover.
Big pharmaceutical companies: to talk to them 120 days It’s time to.
other companies: these 180 days Extension has been given.
The administration has revealed that till now they are not working with big companies. 17 agreements 13 of which have already been signed. The order comes on the first anniversary of Trump’s ‘Liberation Day’, when he started imposing heavy tariffs on global imports.
Rules changed on steel, aluminum and copper also
Along with medicines, Trump has also issued a new update on metal import. Now 50% tariff on imported steel, aluminum and copper from Monday “Full Customs Value” Will be recovered on that basis.
Derivative Products: If the metal content of a product is less than 15% of the total weight (such as a perfume bottle cap), it will attract only the normal country-specific tariff.
Heavy Metal Products: At full price on products with high metal content 25 percent Tariff will be applicable.
Impact of this decision on India and the world
For countries like India, which are major exporters of generic and patented medicines to the US, this news may be worrying. This ‘suicide plan’ or ‘masterstroke’ of Trump has the potential to completely change the global supply chain. Experts believe that this may also lead to instability in global prices of medicines.
