The pharmaceutical industry is trying to recover after the proposal – shock of US President Donald Trump, for 200%duties, which threatens to raise drug prices and destroying corporate profit margins, CNBC notes.

Trump warned again on Tuesday that the long -awaited tariffs across the industry would be announced “very soon”, as the government started the so -called 232 investigation into the industry in April.

Trump suggested that these contributions do not come into force immediately, but to receive a period of grace “about one and a half years”.

Analysts, however, warn that such a rate – even with delay – will have adverse effects on medicines and companies’ profit margins.

“A 200% duty will swell production costs, squeeze profit margins and cause supply chain disorders, leading to drug deficiencies and higher prices for US consumers,” Barclays wrote on Wednesday.

UBS analysts referred to a “significant negative impact” on profit margins. Meanwhile, the blow for patients could be “devastating”, AFSANEH BESCHLOSS, founder and chief executive of the RockCreek Group, said Tuesday, referring to an estimated 100%contribution.

“This would be potentially devastating for every human being because we need these medicinal products and these companies take a long time to produce them here in the US,” Beschloss told CNBC’s Closing Bell.

It is estimated that a duty of just 25% on drug imports would lead to US drug prices to an increase of nearly $ 51 billion a year, increasing domestic prices by up to 12.9% if they are passed on to patients, according to a study by the Pharmaceutical Research and Manufacturers of America (PHRMA). The president’s proposals as “counterproductive” for the health results.

Delay brings little relief

Pharmaceuticals have previously been excluded from trade duties because of their critical nature. However, Trump has repeatedly targeted the industry for the unfair, pricing practices, and has urged companies to transfer their production to the US.

In response, large pharmaceutical companies – including Novartis, Sanofi, Roche, Eli Lilly and Johnson & Johnson based in US -based – have committed commitments to invest large sums in the US.

UBS described the government’s grace for 12 to 18 months’ duties as a ‘inadequate time’ for companies to transfer their production to the US.

“It takes 4 to 5 years to move production to a new location,” analysts wrote.