Prescription drugs become a target in Trump’s trade war

US President Donald Trump late on Tuesday reiterated he would impose tariffs on imports of pharmaceutical products that have long been spared from past trade disputes due to the potential for harm to patients.

- Maggie Fick, Reuters

Trump excluded them from his announcement of sweeping import tariffs last week, but in recent weeks he introduced tariffs on raw ingredients and supplies from China that are used by the industry, and has repeatedly singled out the manufacturing of drugs in Europe as a problem he intends to tackle through a tariffs announcement. Tariffs could be “258 and higher”, he has said. Here is what you need to know:

The Republican president has said major drugmakers such as El Lilly, Johnson & Johnson, and Pfizer should manufacture more of their medicines for American patients in the United States to lessen dependency on other countries and increase tax revenue. Many brand name drugs are made partly in Europe. Ireland, with its low corporate tax rate, is a hub for production of the active ingredients in blockbuster medicines, including Lilly's weight-loss injection Zepbound and Merck's huge-selling cancer immunotherapy Keytruda. Trump has also criticised US pharma companies for registering their intellectual property in Ireland because of the low corporate tax rate.