Rising US Tariffs: A Threat to the Pharmaceutical Industry
The Association of Research-Based Pharmaceutical Companies (VFA) recently warned of the significant impacts that potential US tariffs of up to 200 percent on medicines from Europe could have. These measures could severely disrupt global value chains and increase the costs of drug production, which would have negative consequences for patient care both in the US and in Europe.
Pharmaceutical Industry Under Pressure
The goal of the tariffs threatened by US President Donald Trump is to incentivize European pharmaceutical manufacturers to establish more production facilities in the US. However, as VFA President Han Steutel emphasizes, manufacturers are willing to invest, but they need more time to set up new plants. This is illustrated by the example of Biontech’s COVID-19 vaccine production, where a one-year development and construction period was remarkably quick.
Market Impacts
For investors and savers, the introduction of such tariffs could strain trade relations and permanently alter the pricing landscape for medicines. While no drastic price increases are expected in Europe due to strong legislative price controls, difficult trading conditions could lead to shortages or affect the availability of new medications.
Global Uncertainty
The pharmaceutical industry views the threat of such exorbitant tariffs with great concern. The long-term effects on global supply chains could be substantial, negatively impacting drug costs and security of supply worldwide.