EU, Japan escapes 100% Trump prices on pharmaceutical products due to existing commercial pacts
According to the United States, President Donald Trump on new prices on pharmaceutical imports will save countries that already have drugs in trade agreements with the United States, confirmed a White House official, providing relief to the European Union and Japan, according to Bloomberg.
Under the terms of its agreement, the functions on EU pharmaceutical products will be capped at 15%, the official said. Japanese drugs will be subject to the rate agreed in its pact, with a joint American-Japanese statement, specifying that prices on Japanese drugs and semiconductors would not exceed those applied to other partners, including the EU.
Trump announced on Thursday that the United States would impose a 100% price “on any brand or patented pharmaceutical product, unless a company builds its pharmaceutical manufacturing plant in America”, defined as “a breaking and / or construction ground”. He added that no price would apply “if the construction had started”.
The steep declaration has aroused questions in foreign capitals as to whether the existing agreements were still applied. The head of the White House said that companies announcing plans to build American facilities would also qualify for exemptions while the Commerce Department examines and approves their projects.
The administration has moved in recent days to enforce the understanding of the EU trade. Earlier this week, the United States reduced automotive prices to 15%, compared to 25% in addition to existing rates.
(With Reuters entries)
