In the early morning of March 23rd, US President Trump signed the president’s memorandum, announcing the large-scale collection of tariffs on China’s US$50 billion in commodities and restricting Chinese companies’ investment in M&A in the United States. Biopharmaceuticals are one of the areas in which Trump has imposed tariffs. 5. The stock price of many domestic listed pharmaceutical companies plummeted.
Scale up to $60 billion
According to the memorandum signed on that day, the U.S. Trade Representative Office will formulate a specific plan to impose tariffs on Chinese goods within 15 days. At the same time, the U.S. Trade Representative Office will also sue China to the World Trade Organization on related issues. In addition, the U.S. Department of the Treasury will Within days, the plan was introduced to restrict Chinese companies from investing in mergers and acquisitions of US companies. Trump told the media before the White House signing that the scale of China’s merchandise related to taxation could reach 60 billion US dollars.
The White House predicts that the new tariffs may affect about 1300 goods imported from China. At the same time, the US Treasury Department will also come up with a plan for Chinese investment in the US technology sector within 60 days. It is revealed that the industries that increase tariffs include Automation tools and robots, aerospace and marine equipment, new energy vehicles, railways, agriculture and biomedicine. And China also responded quickly to this. The Ministry of Commerce website showed that on March 23, the Ministry of Commerce issued steel imports for the United States. The Aluminum Product 232 measures suspended the list of concession products and sought public comments. It intends to impose tariffs on certain products imported from the United States in order to balance the losses caused by the United States adding tariffs on imported steel and aluminum products to Chinese interests.
Proclaimed U.S. pharmaceutical company
In early 2017, when Trump met with the president of the US pharmaceutical industry at the White House, he said that he wanted to lower the drug prices and repatriate the pharmaceutical companies to the United States.
Major US pharmaceutical companies participating in the meeting included Novartis, Merck, Johnson & Johnson, Amgen, Eli Lilly and the head of PhRMA, the largest pharmaceutical trade organization in the United States, and the US pharmaceutical industry lobbying agencies, pharmaceutical research institutes, and pharmaceutical manufacturers associations. Executives.
'Our policy will be to make foreign purchases of US medicines at a fair price as a matter of urgency, and thus our pharmaceutical companies can have more extensive financial resources to accelerate the development of new drugs. I think this is very important.' Trump said, 'Currently,' Other countries are doing very unfair things to the United States.
Trump said that other countries must share the cost of drug development, he warned: 'We will stop the global ride.'
Chinese pharmaceutical companies affected?
Some industry experts stated that currently only taxes on imported goods or the removal of preferential treatment on tariffs do involve pharmaceuticals and medical device products, but from the perspective of investment and acquisition, they should have little impact, but both China and the United States will suffer influences.
Earlier, Deborah Elms, executive director of the Asian Trade Center in Singapore, said in an interview with the media that pharmaceutical companies that have established overseas supply chains should be particularly alert to Trump’s threat to impose import duties on foreign manufactured goods. She said that for this industry, this is a very vague question. 'The increase in taxes on import duties will obviously only hit drugs that are manufactured abroad and imported back to the United States, not tariffs.'
Therefore, for domestic pharmaceutical companies in China, more exports will definitely be affected. At the same time, the possibility of Chinese companies acquiring large US pharmaceutical companies will also be reduced.
When the United States issued a large-scale tariff levied on imports from China, the number of domestic pharmaceutical stocks fell across the board on the same day. It can be seen that the impact of Trump's trade war on Chinese pharmaceutical companies has begun!
(Source: Flush)
(Source: China Medical Insurance Association)
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