Pharma giants urge EU support amid looming U.S. tariffs

BELGIUM – Nearly 35 major pharmaceutical companies, including Pfizer, Eli Lilly, and AstraZeneca, have called on the European Commission to take urgent action to help them stay competitive in the region.

In a joint letter addressed to Commission President Ursula von der Leyen, the companies warned that upcoming U.S. tariffs on imported pharmaceuticals could push them to shift more operations to the United States.

According to French business paper Les Echos, the letter outlines several concerns, including pricing challenges, regulatory burdens, and new environmental fees in the EU.

The firms argue that drug prices in Europe are much lower than in the U.S.—often about half the price—which puts them at a significant disadvantage in recovering innovation costs.

“Over the past decade, the pharmaceutical industry has fully absorbed rising costs tied to new medicines,” the companies stated. “We now seek strong and practical support from EU leaders to sustain innovation and production here in Europe.”

One of the key issues raised is the EU’s requirement for companies to conduct clinical trials across multiple countries, a process the firms describe as slow and inefficient.

The companies are urging the Commission to streamline these regulations, making it easier to conduct pan-European research.

They also object to a new fee being introduced in the EU, requiring pharmaceutical companies to cover the costs of removing micropollutants from wastewater.

While acknowledging the environmental importance of the measure, the industry says it adds yet another financial strain on their European operations.

The warning comes just as U.S. President Donald Trump considers placing tariffs on imported pharmaceutical products.

If implemented, these tariffs could add pressure on European manufacturers who already rely heavily on the U.S. market—by far the largest for pharmaceutical sales globally.

In a meeting last week, several top European pharma companies reportedly told von der Leyen that without quick reforms and financial backing, they may accelerate plans to shift more production and innovation activities to the U.S.

They emphasized that the transatlantic supply chain for medicines is deeply interconnected, and tariffs would significantly disrupt this balance.

According to Eurostat, EU exports of medical and pharmaceutical products to the U.S. were valued at approximately €90 billion (US$ 101.5 billion) in 2023.

While the U.S. has long been a key destination for European pharma exports, recent investments suggest a growing trend of European firms building and expanding facilities in the U.S.

As global competition heats up, industry leaders say it’s time for the EU to step up its support. “We hope to work together in the coming weeks to turn these proposals into action—for the benefit of Europe’s patients and its economic future,” the letter concludes.