President Trump has rattled investors and economists with new tariffs on Canada, Mexico, Europe, and China. But more than that, he's rattled the legacy media, which has been running with stories about tariffs and their negative impacts. The latest example is USA Today, warning that Trump tariffs on China could lead to more prescription drug shortages in the U.S.
U.S. Commerce Secretary Howard Lutnick is pushing back on this negative narrative. In a recent Fox Business interview, Lutnick explained that the whole purpose of the tariffs is to move supply chains closer to home so the U.S. is not so reliant on other countries for important items like prescription drugs. "Donald Trump has said there are five big industries he wants to take care of (with his trade policy)," says Lutnick. "Steel-aluminum-copper, automobiles, semiconductors, pharmaceuticals, and lumber...those five are really important to us for our national security."
Despite its scary headline, USA Today admits that the impact of tariffs on prescription drug prices for Americans won't happen "immediately," if at all. They also report that prescription drug shortages have already been happening for years due to the pandemic, supply chain issues, hurricanes, and various other factors that had nothing to do with tariffs. In fact, drug shortages peaked early last year.
Those shortages are all the more reason we should be looking to produce more of our own goods, according to Lutnick. "To enhance and encourage American production---that's what Donald Trump is on, and the world's going to understand it," he tells Fox. "Fair trade, reciprocal trade, bringing those five big industries home, and the United States will flourish."
"You're going to see leadership that this country has been missing, and this is going to be an economy that is explosive."
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