US Tariffs on European Medicines: An Imminent Crisis
The Association of Research-Based Pharmaceutical Companies (VFA) is warning urgently about the severe consequences of the tariffs threatened by US President Donald Trump of up to 200 percent on European medicines. These drastic measures could significantly disrupt global value chains, increase manufacturing costs for medications, and thus jeopardize patient care in both the US and Europe.
Industry Uncertainty
VFA President Han Steutel emphasizes that such tariffs would trigger significant uncertainty in the industry. While there is a general willingness to invest more in the US and produce there—what Trump demands—this requires time. The establishment of a new production facility cannot be realized within 18 months; as an exception, Steutel mentions only the COVID-19 vaccine production by Biontech, whose approval and setup took a year.
Consequences for Investors and the Pharmaceutical Market
The consequences for investors and the pharmaceutical market are substantial: the announced punitive tariffs could increase drug prices by up to about 12.9 percent, which would impact not only the manufacturers but also patients worldwide. Moreover, many pharmaceutical companies are already planning investments in the US 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 medications
- Threat to 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.