US Duties on European Medicines: An Imminent Crisis
The Association of Research-Based Pharmaceutical Companies (VFA) strongly warns of the severe consequences of the duties threatened by US President Donald Trump of up to 200 percent on European medicines. These drastic measures could significantly disrupt global value chains, considerably increase the production costs of medicines, and thus endanger patient care both in the USA and Europe.
Uncertainty in the Industry
VFA President Han Steutel emphasizes that such duties would create significant uncertainty in the industry. Although there is a fundamental willingness to invest more in the USA and produce there—as Trump demands—this requires time. Establishing a new production facility cannot be realized within 18 months; as an exception, Steutel only mentions the corona vaccine production of Biontech, whose approval and production setup took a year.
Consequences for Investors and the Pharmaceutical Market
The consequences for investors and the pharmaceutical market are significant: The announced punitive tariffs could lead to an increase in drug prices by up to about 12.9 percent, which burdens not only the manufacturers but also impacts patients worldwide. Moreover, many pharmaceutical companies are already planning investments in the USA to mitigate risks in light of this tariff threat.
Demands on Politics
In summary, the pharmaceutical industry faces a potential crisis due to these US tariff threats:
- Massive disruption of global supply chains
- Significant cost increases for medicines
- Endangerment of patient care on both sides of the Atlantic
- Uncertainty for investors and market participants
This development calls for strategic action from European politics as well as adjustments within the industry itself.