US announced steep tariffs

By Jan Christoph Freybott

Washington (dpa) — The US government has announced the imposition of 100% tariffs on patented pharmaceuticals and ingredients.

The tariffs will come into effect in 120 days for certain large companies, and in 180 days for smaller companies

However, a reduced rate of 15% applies to the EU, according to a White House decree.

This move makes it clear that the US government is continuing to pursue its aggressive tariff policy even following a recent landmark tariffs decision by the Supreme Court which ruled that many of the tariffs imposed by Trump administration were unlawful in their current form.

Continued focus on tariffs

Trump has made the use of tariffs a central pillar of his second term.

The hope is that tariffs may lead to more production to the United States and thereby secure jobs. Furthermore, his administration is targeting billions in additional revenue.

High drug prices in the US, in particular, have long been a in Trump’s sights, so observers had been expecting new tariffs.

US announced steep tariffs

In addition to EU member states, Switzerland and the United Kingdom are exempt, and the exemption also applies to Japan.

According to the information provided, countries can also reduce their tariffs to zero if they reach appropriate agreements with the government and begin building factories in the US.

Metals also targeted

The US government also intends to make changes regarding aluminium, steel and copper.

The US had not achieved the desired tariff revenues because the world has artificially lowered the declared costs of steel imports to America, a senior government official said.

A 50% per cent tariff rate is therefore to be levied in future not on the exporter’s price, but on the price charged on the American market. For companies exporting to the US, this could mean significantly higher duties. For other products, however, the tariff rate could actually fall. Provided they consist of more than 15% steel, aluminium or copper, a uniform rate of 25% will apply in future.

Previously, a 50% rate had been levied on the proportion of the product consisting of one of these materials, the government official explained.