Filenews 28 September 2025
The US president appeared publicly last Thursday to blatantly violate the agreement he had reached in August with the European Union on tariffs on European products imported into the US, which included a provision to avoid the imposition of tariffs on innovative drugs and the substances that make them up, but also a provision for the non-imposition of increased tariffs on pharmaceutical products by the EU, more than 15%.
Against that agreement, which had been disapproved by some European governments, Donald Trump shocked European and foreign pharmaceutical companies by announcing that from October 1 the US will impose tariffs of up to 100% on imports of "any branded or patented pharmaceutical product", with the exception of those of companies that will build manufacturing plants in the country.
Reports in the European press point out that it is not clear which drugs are affected by Trump's decision, but it is considered certain that these include patented and innovative drugs. Generic drugs may not be affected.
President Trump has opened a window of escape for European and other pharmaceutical companies, saying they will not be subject to a doubling of the tariff if they invest in the United States by building factories to produce pharmaceutical materials.
Despite Trump's statement, the European Commission claims that there is an August agreement with the US, which stipulates that tariffs on pharmaceutical products imported from the EU will not exceed 15% and requires that this "ceiling" be applied.
Heavy consequences – disinvestment
In the event that the additional 100% tariffs are imposed from October 1, European and foreign drugs imported into the US will become very expensive within a day and whether their import into the country is stopped will not be attractive to American residents. In such a development, American manufacturing companies or European companies with factories in the US will gain an advantage.
The EFPIA (European Federation of Pharmaceutical Industries and Associations) warns that these tariffs could lead to a redirection of investments and research centres from Europe to the US, where conditions become more favourable (lower tariffs, stronger market access). There is already turmoil in pharmaceutical companies in the EU, which are reviewing their plans and discussing moving them to American soil. The exemption provided for companies that build or will build factories in the United States creates a strong incentive to move foreign drug production there. This will obviously weaken the European pharmaco-industrial base.
In addition, Australia, which in 2024 exported $1.35 billion worth of pharmaceuticals to the US. He reacted strongly to Trump's decision: "We buy far more pharmaceuticals from the US than they buy from us. It is not in the interest of American consumers to impose a higher price on Australian exports to North America," Australian Health Minister Mark Butler assessed on Friday.
In this context, the European Federation of Pharmaceutical Industries and Associations (Efpia) estimates that the imposition of new tariffs by the US on medicines "will create the worst of situations". Efpia Managing Director Natalie Mol commented that these tariffs "create the worst of situations", while reminding that they "increase costs, disrupt the supply chain and prevent patients from accessing vital treatments".
