United States President Donald Trump says he should impose rates on pharmaceutical products by the end of July and that semiconductor rates may come in. The measures must coincide with the application of broader “reciprocal” tariffs, scheduled to take effect on August 1.
“Probably at the end of the month. Let’s start with a low rate and give about a year for pharmacists to build a capacity in the US. Then we will apply a very high fare,” Trump told journalists on Tuesday, returning to Washington after an artificial intelligence summit in Pittsburgh.
Trump also states that semiconductor rates should follow a “similar” schedule and that the process would be “less complicated” to implement.
Earlier this month, Trump had already announced plans for a 50% rate on copper and said drug tariffs could reach 200% after the transition period. The government has opened investigations based on section 232 of the 1962 commercial expansion law, claiming that dependence on imports of remedies threatens national security.
The measures should reach giants of the sector such as Eli Lilly, Merck and Pfizer, who maintain production outside the US, and can press prices to US consumers. Chip rates can affect not only semiconductors, but also products such as Apple and Samsung laptops and smartphones.
The offensive occurs while Trump sends letters to trading partners establishing unilateral tariffs, even though they maintain some negotiations. On Tuesday, the president announced an agreement with Indonesia, reducing from 32% to 19% a previously stipulated tariff. On the other hand, Indonesia has committed to buying $ 15 billion in American energy, $ 4.5 billion in agricultural products and 50 Boeing jets.
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Trump expects to close “two or three” commercial agreements before August 1, citing India as one of the most advanced negotiations. The president says he keeps “substantial” conversations with up to six countries, but points out that he prefers to define tariffs directly instead of signing long deals.
“I would say India, and we have some others. But to be honest, I’m very pleased with the letters,” he said.
It also signals a standard rate of “just over 10%” for lower countries that do not receive specific rates.
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Earlier, Trump reported that representatives of the European Union – who faces a 30% rate – should meet with US officials this week. According to him, some countries, such as South Korea, showed the willingness to negotiate after the threats, while others, like Japan, not.
Trump also minimized concerns about his threat of imposing “secondary tariffs” on Russian business partners if Moscow does not accept a ceasefire with Ukraine. “I don’t think this will impact Americans. I think this whole issue will disappear,” he said.
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