Donald Trump announces a 100% rate on brand pharmaceuticals

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Donald Trump said the United States would impose 100% tariffs on the imports of brand pharmaceuticals or patented from October 1, in a sudden climbing of his trade war.

The American president announced this decision in a social post of truth on Thursday, adding that exemptions would be offered to companies that build new manufacturing sites in the United States.

It will be “defined as” a breaking field “and / or” under construction, “wrote Trump. “There will therefore be no rate on these pharmaceutical products if the construction has started.”

Earlier this year, the United States has launched a national security survey that could lead to prices on pharmaceutical products, but it is not clear if the functions announced by Trump relate to this survey.

Pharmaceutical products are exempt from the so-called reciprocal rates that Trump announced in April, when the president launched his trade war.

The prices announced by Trump do not apply to generic drugs, but hit the shares of several Asian pharmaceutical groups on Friday.

In Japan, the actions of Sumitomo Pharma, which sell prostate cancer and bladder treatments in the United States, fell 5%, while the holdings of Otsuka and Chugai Pharmaceutical controlled by Roche decreased 4.1%and 2.8%respectively.

Trump targeting of the pharmaceutical industry came in a burst of publications on social networks in which it also extended prices to trucks and imported furniture products.

Heavy trucks made abroad will be subject to a price of 25%, while cabinets, bathroom vanities and “associated products” will be struck by a 50%tax and padded furniture with 30%.

Trump threw the prices offered on trucks and bathroom cabinets in terms of national security. “We need our truckers to be financially healthy and strong, for many reasons, but above all, for national security purposes!” He wrote.

He accused “other external countries” of large-scale floods “of cabinets and furniture in the United States and said that America’s manufacturing processes should be protected.

Trump’s prices on brand drugs and medical risks complicating the efforts of businesses and other governments to protect their exports from functions via trade agreements.

Tokyo’s chief commercial negotiator Ryosei Akazawa insisted that the United States has given Japan the most favored national status on samples from semiconductors and drugs, which means that they would not be higher than those applied to other nations or blocks.

The EU has said that the United States has agreed with pharmaceutical products would not exceed 15%, but it is not difficult to know how imports of Japanese brand drugs in the United States will be treated as the latest publication of Trump’s social media.