US Tariffs of 200 Percent on European Medicines: Concerns of the Pharmaceutical Association
The Association of Research-Based Pharmaceutical Companies (VFA) expresses significant concerns regarding the tariffs of up to 200 percent on imported medicines from Europe announced by US President Donald Trump. These measures could have far-reaching consequences for the global pharmaceutical industry.
Background and Motivation
The tariff threat is based on an investigation under the Section 232 procedure, which relates to national security interests. Trump’s goal is to push pharmaceutical companies to invest and produce more in the USA to reduce dependence on imports.
Possible Impacts
- Price Increases: The introduction of tariffs could lead to drastic price increases for medications. Analysts warn of possible price hikes of up to 12.9 percent.
- Global Value Chains: The tariffs could significantly disrupt global value chains, potentially leading to delays in the supply chain.
- Patient Care: VFA President Han Steutel emphasizes that the tariffs pose a dangerous game with patient care in both the USA and Europe.
- Investments in the USA: Pharmaceutical companies are willing to invest in the USA, but this requires time. A transition period of twelve to eighteen months is planned to give manufacturers sufficient time to adjust their production.
Impact on Europe
Although the VFA president does not expect price increases in Europe, the global market changes may have indirect effects on the European pharmaceutical industry. European manufacturers may struggle to maintain their exports to the USA, leading to a shift in the global market structure.
Conclusion
The looming US tariffs of 200 percent on European medicines present a significant challenge for the global pharmaceutical industry. The potential consequences range from price increases to disruptions in the supply chain and patient care. The industry must adapt to minimize the impacts of these measures.