What does Trump want?

Trump's clear message is that foreign pharma companies will either have to reduce the prices of their medicines or start manufacturing them in the US. Companies that do not accept this condition will have to pay heavy taxes to survive in the US market.

Separate limits for friendly countries

Companies that shift some of their production to the US will be kept in the 20% tax bracket. However, for America's close trading partners like Japan, South Korea and the European Union, this tax limit has been set at 15%.

Who was given relief?

On the other hand, a big relief has been given in the duty on steel, copper and aluminum. Earlier, there was a 50% tax on these metals, which has now been reduced to 25%. With this step, industries in America will get cheap raw materials at home.

Why was the decision taken?

One of the reasons behind this new tax is also an old order of the Supreme Court. In February, the court had declared some of Trump's previous taxes illegal, due to which the government had to refund $ 166 billion. Trump has brought this new rule to compensate for this economic loss.

What do people think?

Pharma companies have been given 120 to 180 days to implement this change. The steel industry has welcomed the decision, but experts believe that the steep tax on medicines could make healthcare expensive for the common man.