European Pharma Sector Faces Turmoil as Trump Considers Tariffs on Medicines

As President Trump contemplates tariffs, Europe’s pharmaceutical industry braces for significant upheaval that could impact drug accessibility and production strategies.

Insulin, heart treatments, and antibiotics have crossed borders without tariffs for decades, aiming to ensure medicine affordability. However, this may soon shift as President Trump considers imposing higher tariffs on pharmaceuticals, part of a wider strategy to reshape global trade and revitalize American manufacturing. This month, Trump indicated that such tariffs could be introduced in the “not too distant future," raising alarms about the repercussions for EU-made drugs.

Pharmaceuticals and chemicals represent the European Union's foremost export to the United States, including vital medications like Ozempic, cancer treatments, cardiovascular drugs, and flu vaccines. These branded products are highly profitable in the US marketplace, which is characterized by soaring prices and a large consumer base.

Léa Auffret, head of international affairs for the European Consumer Organisation, expressed grave concerns: "These are critical things that keep people alive. Putting them in the middle of a trade war is highly concerning."

In response to the looming tariffs, EU pharmaceutical companies have various strategies at their disposal. Some have begun increasing production within the US to avoid additional costs, aligning with Trump's desires, while others are deliberating a potential shift of their manufacturing base to the US in the future. As this trade debate unfolds, the fate of essential medicines hangs in the balance, affecting millions who rely on these products for their health and wellbeing.