Investment.com – US President Donald Trump on Monday signed a decree to increase the production of domestic pharmaceutical products and warned that in the next two weeks, he will introduce import tariffs for this field.
Trump's decree will reduce the time needed to approve new domestic pharmaceutical enterprises, and guide the management of products and drugs (FDA) to simplify inspection processes, cooperate with manufacturers to increase production capacity.
Trump's decree also stipulates an environmental protection agency to accelerate the construction of new facilities.
This step is Trump's last initiative to increase drug production in the United States. On Monday, Trump also said that in the next two weeks, he would introduce import tariffs for pharmaceuticals, after earlier this year, initiated surveys in this field to study possible commercial tasks.
Trump's main request for foreign pharmaceutical products is that it causes a threat to national security due to a strong dependence on the United States to import pharmaceuticals.
The tariffs for pharmaceuticals can create significant obstacles for the industry, saying that the United States imports the annual prescription drugs worth more than $ 200 billion. It is expected that European companies will suffer the most, such as drug manufacturers in India and medical equipment manufacturers in China.
The threat to introduce US tariffs has led to the fact that some pharmaceutical giants, including Roche, Novartis (SIX: Novn), Eli Lilly (New York: Lly) and Johnson & Johnson (New York: NYSE: JNJ), announced the increase in domestic production in the past few weeks.
Trump's threat to introduce tariffs on pharmaceuticals is the final point in the President's tariff program. On Sunday, he threatened to introduce a 100% tax rate for foreign films.
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