European pharma industry responds to impending U.S. tariffs

BELGIUM – ​On April 8, 2025, European Commission President Ursula von der Leyen convened a high-level meeting with leaders from the pharmaceutical industry to address the potential implications of impending U.S. tariffs on pharmaceutical products.

The dialogue aimed to gather industry concerns and formulate an effective European Union (EU) response. ​

Industry representatives, including the European Federation of Pharmaceutical Industries and Associations (EFPIA) and Europabio, expressed apprehension that the proposed tariffs could accelerate the relocation of investment and research and development operations from Europe to the United States.

They emphasized the strategic importance of the pharmaceutical sector to the EU and urged the Commission to implement swift reforms to the regulatory framework and enhance intellectual property protections to maintain the industry’s competitiveness. ​

The context for these discussions stems from recent announcements by U.S. President Donald Trump, who indicated plans to impose significant tariffs on imported pharmaceutical products.

Speaking at a dinner with House Republicans, Trump defended his administration’s tariff policies, stating that the tariffs generate substantial revenue for the U.S. government.

He announced that new tariffs on pharmaceutical imports would be introduced imminently, aiming to incentivize foreign manufacturers to relocate production to the United States. ​

Trump asserted that these measures would boost domestic pharmaceutical manufacturing and strengthen the U.S. economy.

He suggested that pharmaceutical companies would abandon countries like China due to the new economic pressures and reopen manufacturing plants in the U.S. This move is part of a broader strategy to revamp trade policies and encourage domestic investment. ​

The pharmaceutical industry has expressed concerns that such tariffs could lead to increased medication costs and exacerbate existing drug shortages in the U.S.

Trade groups warn that the import taxes could strain generic drugmakers and distributors, potentially leading to higher prescription drug costs for patients.

The Association for Accessible Medicines (AAM) highlighted that the global supply chain for generic and biosimilar medicines is crucial for U.S. patients, and tariffs could disrupt this supply, leading to shortages and increased costs. ​

In response to the U.S. tariffs, the European Commission has proposed 25% retaliatory tariffs on selected U.S. products.

However, there is concern that such measures could further weaken the European pharmaceutical sector and lead to a loss of competitiveness.

EFPIA has long warned that without regulatory changes, Europe risks losing its pharmaceutical industry edge to the U.S.