Pharmaceuticals May Face Tariffs by End of This Month

Donald Trump, President of the United States, has emphasized that 'complete market opening' is the key to the mutual tariff agreement. President Trump stated that he could conclude negotiations with 2-3 countries before the implementation of mutual tariffs on August 1. He also mentioned that Korea has shown willingness to open its market. Furthermore, he has raised the stakes by bringing up the tariff card on pharmaceutical items, increasing pressure on countries before the implementation of mutual tariffs.

President Trump told reporters at Andrews Joint Base in Maryland on the 15th (local time) that "we are negotiating with 5-6 countries and expect to reach agreements with 2-3 countries." Trump particularly emphasized that "market opening by trading partners is crucial."

On this day, while announcing the agreement with Indonesia, he also mentioned the opening of the market. The United States and Indonesia agreed to impose a 19% tariff on Indonesian products imported into the United States, while Indonesian imports of U.S. products would be tariff-free. The tariff rate on Indonesia announced by the United States last April was 32%. President Trump emphasized that through this agreement between the two countries, all non-tariff barriers have been completely removed, allowing U.S. companies to enter the Indonesian market.

President Trump also said, "Japan never tries to open its market. Therefore, Japan is likely to follow the letter specifying a 25% mutual tariff rate," adding that "Korea seems willing to respond to market opening."

President Trump also announced plans to impose tariffs on pharmaceutical items that day. When asked by a reporter about this, he replied, "It will probably be imposed by the end of this month." He added, "We will start with low tariffs and give pharmaceutical companies about a year to build production lines in the United States," and "then impose very high tariffs." It is a threat to significantly raise pharmaceutical tariffs in the future.


pride@fnnews.com Lee Byeong-cheol Reporter