US President Donald Trump has once again shown his attitude. He has warned to impose tax i.e. tariffs on importing drugs from many countries of the world. Trump wants America now make its own medicines. Trump is especially targeting India and China, as these two countries play an important role in America’s drug supply chain. Trump claims that this will increase the trust of America in the production of medicines in its country and will strengthen national security. But the report shows that India is now trapped in the affair of harassing India.
Big companies are investing heavy
After this threat of Trump, big pharmaceutical companies have said to increase their factories in America. According to CNN report, Astrazneca will insert $ 50 billion in the US. Johnson & Johnson is planning to invest $ 55 billion. At the same time, Eli Lily is planning to invest $ 27 billion. Overall, pharmaceutical companies are preparing to plant around $ 250 billion in America. Trump says that these steps are necessary to reduce the security of the country and reduce the price of medicines, but according to the report, the prices of medicines are not going to decrease even after doing so.
Trump Pharma Tarifs
Will America become really self -sufficient?
Experts believe that the matter is not so easy. Not only the factory is enough to make medicine, but the raw material used in it is the most important and this raw material still gets from outside. That is, even if America made medicines, it will have to take raw material from India, China or other countries. Apart from this, it is not cheap to make medicines in America. Everyone costs more from wages to machine and electricity. That is, even if medicine is made in America, then it will put more weight on the common man’s pocket.
Companies do not want to make generic medicine
Some companies have talked about making generic medicines in America but most companies are far from it. The reason for this is that profits on generic medicines are very low. In such a situation, companies are afraid that they are going to suffer losses by setting up factory in America and they will not be able to face these losses. Currently, about 90 percent of the medicines written on the slips of doctors in America are generic and most of them come from abroad, especially from India.
Pharma industry
Local production is not easy, big expenses will be spent
Experts say that if America has to become self -sufficient in the drug sector, then the government will have to provide great financial help. Otherwise, companies will withdraw from investing in America. Trump has indicated that they can impose 200% tax on medicines but before that they will also give 1 year time to companies so that they can prepare.
Nevertheless, experts believe that it will take at least 3 to 5 years to form and start new factories. Also, the cost of making medicines in America will be high, due to which medicines will not be cheaper. If the raw material is to come from outside from the top, then it will also be taxed, that is, the entire common people are sure to be affected. Along with this, there is also a danger of many pharmaceutical companies being ruined. This plan of Trump can only look good to hear, but it is very difficult to implement it on the ground.