US President Donald Trump has threatened to go further in his tariff war by adding an additional “major tariff on pharmaceuticals.” Drug imports were not included in the US administration’s first round of tariffs last week, but hopes that they might continue to evade an additional levy could soon be extinguished.
The United States is the biggest market for British Pharmaceutical products, accounting for half of UK exports, which have an approximate value of £8.7 billion. Speaking at a dinner of the National Republican Congressional Committee, Trump said: “We’re going to be announcing very shortly a major tariff on pharmaceuticals. When they hear that, they will leave China.
“They will leave other places because they have to sell — most of their product is sold here, and they’re going to be opening up their plants all over the place.”
Domestic drug manufacturing has declined in the United States in recent decade, in a similar way to many other industries.
China has been the main beneficiary of the exodus of drug manufacturing out of the US, according to the Food and Drug Administration.
Last week, Donald Trump announced a range of tariffs for dozens of countries across the world, ranging from a blanket tariff of 10%, rising to a whopping 104% on China.
The subsequent market reaction has seen stocks tumble across global markets, although thus far, the US President has shown no signs of relenting.
Trump said: "These countries are calling me up, kissing my ass...they are dying to make a deal... They are, they are dying to make a deal. Please, please, sir, make a deal. I'll do anything."
China has responded strongly to Trump’s actions, slapping reciprocal tariffs on US goods entering Chinese markets, heightening fears of a looming global trade war.
Trump added: "China will now pay a big number to our treasury. This is all taxes.
White House Press Secretary Karoline Leavitt backed the actions of the US President.
She told reporters: “Countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake.
“President Trump has a spine of steel, and he will not break. The Chinese want to make a deal, they just don’t know how to do it.”
