Are Drastic US Tariffs Looming?
The Association of Research-based Pharmaceutical Companies (VFA) warns of drastic US tariffs of up to 200 percent on medicines from Europe, which could have significant consequences for the global value chain and medication supply. VFA President Han Steutel emphasizes that such tariffs would not only massively increase the costs of medication production but also pose a dangerous game with patient care in the US and Europe.
Background of the Tariff Threat
US President Donald Trump announced this tariff threat as part of an investigation under the Section 232 procedure, which concerns national security interests. A transition period of about twelve to eighteen months is meant to give manufacturers time to adjust their production structures. However, Steutel warns that it is unrealistic to build new production facilities in the US within this time frame – only the Corona vaccine from Biontech is an exception here, having been established and approved quickly.
Economic and Social Consequences
The consequences for investors are substantial: The tariffs could lead to a drastic increase in medication prices of up to 12.9% while simultaneously severely disrupting supply chains. This would not only pressure the profit margins of pharmaceutical companies but could also potentially lead to shortages of essential medicines. However, the VFA does not expect price increases in Europe itself, as price hikes are heavily regulated by law there.
In Summary:
| Aspect | Impacts |
|---|---|
| Tariff Level | Up to 200% on European medicines |
| Consequences for Value Creation | Massive disruptions of global supply chains |
| Impact on Prices | Increase of up to about 13% in the US |
| Patient Care | Endangered by potential shortages |
| Manufacturer Reaction | Willingness to expand production in the US (time-consuming) |
These developments are currently causing significant uncertainty among European pharmaceutical manufacturers and investors worldwide.