Pharmaceutical Tariffs Delayed to Give Companies Time to Negotiate
Pharmaceutical tariffs were not applied on Oct. 1, as previously threatened by the Trump administration (see 2509250066), to give companies time to continue negotiating and begin on-shoring their manufacturing, according to recent statements by Commerce Secretary Howard Lutnick.
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Lutnick, when asked on Sept. 30 for a timeline for the pharmaceutical Section 232 investigation, said that "while we're negotiating with these companies, we're going to let them play out and finish these negotiations."
"Starting October 1, the Trump administration will begin preparing tariffs on pharmaceutical companies that do not begin on-shoring their manufacturing or participate in the President’s Most Favored Nations push to reduce drug prices," a White House official told International Trade Today Oct. 2.
Despite the delay, the White House official said that Trump remains "wholeheartedly committed" to a reduction in drug prices and "will not hesitate to utilize tariffs" to make that happen.