200% tariff on pharmaceuticals looming
The pharmaceutical industry is bracing for a potential 200% levy by the United States as President Donald Trump expresses frustration regarding tariff policy.
If passed the move would potentially see an increase in drug prices and effect corporate profit margins.
The administration has already launched a so-called 232 investigation into the pharma sector which gives the President discretion to impose unilateral tariffs in cases of national security risks.
According to CNBC, Trump suggested that those levies would not go into effect immediately, but get a grace period of “about a year, year and a half to come in.”
According to one estimate a 25% on pharmaceutical imports would drive up U.S. drug prices by over $50bn.
Ireland stands to be hit particularly hard from any punitive strategic tariffs as it hosts a number of pharmaceutical companies with about $50bn worth of exports emanating from the country.
U.K. economy contracts
The U.K. economy shrank last month, as tariffs and increased business uncertainty fed into a gloomy financial trajectory.
According to the Office for National Statistics (ONS), gross domestic product (GDP) contracted 0.1% month-on-month in May defeating analysts expectations of a 0.1% expansion.
April saw a similar but more profound contraction of 0.3%.
Sector by sector showed production output and construction down by 0.9% and 0.6% respectively.
The U.K. is still reeling from a a 10% “reciprocal tariff” from the U.S despite not running a trade surplus, bar services.
While Britain did strike a trade deal with the U.S. a lessening of tariffs applies only to select products like steel, aluminium and cars, while also lacking in congressional approval.
Tesla Sales Increase in Norway
Despite growing backlash to Tesla due to its controversial CEO Elon Musk, the EV maker saw an over 50% jump in new car sales in Norway last month.
That’s according to the Norwegian Road Federation (OFV).
Secretary General of the Norwegian EV Association Christina Bu, secretary general of the Norwegian EV Association (NEVA) said the uptick was encouraged by an 115.3% yearly increase in registrations for its revamped Model Y sports utility vehicle.
“In general terms, I think it just has to do with the fact that they deliver a car which has quite a lot of value for money and is what Norwegians need,” Bu told CNBC during an interview at NEVA’s office in Oslo.
He added: 'The Tesla Model Y appears to be especially popular in Norway because of its competitive price and the fact that it meets local demand for large luggage space, high-ground clearance, all-wheel drive and a tow hitch’.
The increased sales data showed a similar increase in Tesla car registrations of 6% in Spain and an over 70% uptick in Portugal.
Norway has been recognised as a leading champion in promoting sustainable transportation through a mix of tax incentives including VAT exemption, discounts on road and parking taxes and access to bus lanes for EVs.
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