The measure though, will not apply to those companies that are currently building their drug manufacturing plants in the US or those who already have plants.In August, Trump had warned that tariffs on Pharma imports in to the US could eventually reach up to 250%. He had said that he would initially start with a “small tariff”, and gradually raise it to 150% and then 250%.
The Pharmaceutical sector was under investigation for national security by the US Commerce Department under Section 232. The latest probe also expands the list of goods that could face higher tariffs to surgical mask, N95 respirators, gloves, and other medical devices including syringes and needles.
“Pharmaceuticals, such as prescription drugs, over-the-counter drugs, biologics, and specialty drugs, will not be covered under this investigation as those imports are being examined in a separate Section 232 investigation,” the Commerce Department said.
Shares of Caplin Point and Wockhardt are down 4.5% each, while those of Natco Pharma, Laurus Labs, Alembic Pharma and Sun Pharma are down between 3% to 4%.
