U.S. delays new tariffs on pharmaceuticals

The new tariffs on pharmaceutical imports into the United States, announced by President Donald Trump for October 1, has been postponed for now, according to government sources.

Instead, the Trump administration will begin preparing tariffs targeting pharmaceutical companies that refuse to relocate production to the U.S. or lower their prices, a senior U.S. official said on Thursday, without giving a reason for the delay.

Earlier, Trump had unexpectedly announced that a 100 per cent tariff would take effect from October 1 on imports of branded and patented medicines into the U.S, pharmaceutical companies could avoid the tariffs by building production facilities in the U.S., though details were unclear.

Just before the planned start date, U.S. officials clarified that the European Union would be exempted from the new rules on pharmaceutical products, with EU imports continuing to face a 15 per cent tariff.