The implementation of tariffs by the Trump administration is a complicated manner as it is being used for several purposes. Certainly, they are being implemented as a negotiating tool to demand changes by other governments such as immigration policies and illegal drug importation. They are also being used to counteract unfair trading practices that have been allowed to go on for way too long. For example, allowing free automobile importation into the US yet American automobiles are nowhere to be found in the streets outside the US.
But, there is one industry that is effected by unfair trade practices that are egregious and that is the pharmaceutical industry. In order to export drugs into foreign countries, they are mandated to lower their prices, in what is characterized as price controls. Essentially, an American dominated industry is being forced to lower its prices in exchange for opening the market to them. This has the same effect to the manufacturer as a tariff placed as it results in less revenue per sale. This is not only unfair to the pharmaceutical industry who are singled out to operate under these foreign government imposed controls, but also to Americans who end up paying higher price for prescription drugs. The drugs were developed here in the US and the companies reside in the US. By Americans paying higher prices for drugs, we are subsidizing those drugs to the rest of the world. Its time for this to stop.
All drugs being imported into the US by foreign pharmaceutical companies should be subjected to reciprocal price controls. Countries that implement price controls but do not export pharmaceuticals to the US should have offsetting tariffs placed on their non-pharmaceutical exports into the US.
The pharmaceutical business is a jewel of American industry. It reflects our ingenuity, our commitment to science, and our culture which allows for many failures to produce one blockbuster. It produces drugs that improve and extend our lives at the costs of billions of dollars in research and development. We shouldn't be selling them on the cheap to other countries. If anything, they should pay more.
This is low hanging fruit for the Trump administration and I implore President Trump to investigate the great rip-off of the American pharmaceutical industry by foreign nations.