Donald Trump Shocks Global Markets: 100% Tariff on Medicines, Tweaks Metal Duties

Washington: US President Donald Trump has signed new executive orders, taking two major decisions related to trade and industrial policy. On one hand, a tough stance has been taken on imported branded medicines and heavy tariffs have been imposed, on the other hand, it has been decided to give relief in duty on metal products. These decisions are expected to have an impact on global trade, especially on countries like India.

Is 100% tariff imposed on imported branded medicines?

Under the new order, 100 percent tariff will be imposed on patented, i.e., branded, medicines coming to America. This decision will be applicable to those countries that have not made production reshoring or pricing agreements with the US.

Will India also come under the purview of this decision?

It is being said that many countries including India may come under the purview of this new tariff. Especially those companies that have not been included in the US reshoring plan, heavy duties imposed on their medicines.

Have generic drugs got a reprieve yet?

At present, generic medicines have been kept out of this stringent tariff. However, American officials have indicated that if the production is not shifted to America, then strictness on these may also be increased in future.

Is there a strategy of self-reliance behind this decision?

According to the White House, this step has been taken with the aim of reducing America's dependence on foreign medicines. The government wants a major part of drug manufacturing to be done within the country.

Have there been changes in tariffs on metal products?

Under the second order, America has changed the tariff structure on products made of steel, aluminum and copper. Its purpose is said to be to make business easier and to clarify the rules.

Have duties been reduced on all products?

The government has made it clear that up to 50 percent duty on base metals will continue, but relief will be given on those products in which the quantity of these metals is limited. This may eliminate duty on many small products.

Will this decision affect global trade?

Experts believe that these decisions can have an impact on the global market. Especially for countries involved in pharma and metal sectors, this policy change can bring both challenges and opportunities.