European pharma still bracing for tariff fears

EU Pharmaceuticals Fears Surging U.S. Tariffs

After a weekend announcement of a new EU‑U.S. trade framework, the European pharmaceutical industry warned that its future remains uncertain.

Agreement Details

• Most EU goods entering the United States will face a 15 % tariff under the deal.
• Washington keeps the option to impose a higher levy on medicines.
• Current U.S. imports of EU pharmaceuticals enjoy tariff‑free treatment until a Section 232 decision is reached.

EFPIA’s Standpoint

The European Federation of Pharmaceutical Industries and Associations (EFPIA) said it was “monitoring developments that could leave key implications for the pharmaceutical sector unclear.”

EFPIA criticised any tariff instrument on medicines, arguing it would “disrupt supply chains, hamper R&D investment, and ultimately harm patient access on both sides of the Atlantic.”

Trump’s 200 % Threat

Earlier this month, President Donald Trump threatened to impose tariffs of up to 200 % on pharmaceuticals within a year if foreign firms did not move more manufacturing into the United States.

EU Investment Response

Facing these risks, major European groups—Roche, Novartis, and Sanofi—announced investments exceeding $200 billion in the U.S., the world’s largest drug market.

U.S. Pharma Footprint in Ireland

U.S. pharmaceutical companies have set up operations in Ireland to take advantage of its low corporate tax rate. The sector employs around 50 000 people and accounted for nearly half of Ireland’s exports last year, reaching 100 billion euros ($116 billion).