Washington: US President Donald Trump has revealed more details about his plan to impose import taxes on drugs, announcing that the United States will move ahead with the tax by the end of July. Trump said the U.S. would start with a low tariff to give drug companies time to relocate manufacturing there, before introducing a higher tariff in about a year. Trump said there are two ways to do this – make money or move to the U.S. and avoid paying taxes. Those are the two ways pharmaceutical companies are moving back to the U.S., where they belong.

According to Thai News Agency, Trump set an Aug. 1 deadline for target countries to reach a tariff deal with the U.S., and he has promised to reach an agreement with 90 countries within 90 days. However, so far only a handful have reached an agreement with the U.S. This initiative is seen as part of Trump’s broader strategy to boost domestic manufacturing and reduce dependency on foreign drug imports. The administration asserts that these measures will encourage pharmaceutical companies to establish or expand operations in the United States, thus fostering economic growth and job creation.

The move has sparked varied reactions from industry stakeholders and global trading partners. While some pharmaceutical companies are considering shifting their production facilities back to the U.S. to avoid the impending tariffs, others are lobbying for exemptions or seeking to collaborate with the government to find a mutually beneficial solution. The international community is closely monitoring the situation, as the imposition of tariffs could potentially disrupt the global supply chain of medicines, affecting availability and pricing in various countries.