Trump plans 100% tariff on drugs, sets implementation date

U.S. President Donald Trump has announced a plan to implement significant tariffs on generic drugs, aiming to bring pharmaceutical production back to the United States. The new policy is set to take effect on August 1.

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The tariff rate will be applied as 0 percent for a period of two years

According to Trump's social media announcement, the tariff rate for all generic drugs imported into the U.S. will remain at 0% for an initial two-year period. Following this period, the tariff rate will increase to 100% for one year, and subsequently to 200% thereafter.

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sanctions will be applied to companies that do not prefer to invest in factories and equipment within the specified period

Trump stated that the primary goal of this policy is to encourage the domestic production of generic drugs. Companies that do not choose to invest in factories and equipment within the specified timeframe will face sanctions. He asserted that the policy's objective is to "protect the American people."

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The aim of the policy is to 'protect the American people'

The president also clarified that the existing policy for patented, branded, or innovative drugs will remain unchanged. He noted a significant increase in the construction of drug manufacturing facilities across the U.S., describing it as an unprecedented level.

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drug manufacturing facilities are being built across the United States at a level never seen before