US tariffs seen threatening European pharma production and research
German and Swiss pharmaceutical manufacturers warned that new US tariffs could threaten European production and research. Industry groups said the measures could disrupt medicine supply chains and shift investment to the US.
Pharmaceutical manufacturers in Germany and Switzerland on Friday warned that the latest US tariffs on pharmaceutical products could threaten production at their European facilities, industry representatives said. The US administration seeks to encourage pharmaceutical companies to set up operations in the US by imposing a 100% surcharge, while Germany and all other EU member states, as well as Switzerland, Japan and South Korea, are exempt from this due to separate agreements and face tariff rates of up to 15%.
"In the medium term, there is a risk that parts of production and research will move to the US," where regulatory and financial incentives are attractive, the Association of Research-Based Pharmaceutical Companies in Berlin said. The Swiss association Interpharma warned of negative consequences for patients.
The pharmaceutical associations view the new measures as a massive intervention in the medicines market. The tariffs "jeopardise global production and supply chains for medicines, hinder research and development, and ultimately harm patients worldwide", Interpharma warned.
Individual manufacturers can avoid tariffs by increasing investment and production in the United States and by lowering their prices there. Among others, the Swiss industry giants Novartis and Roche concluded agreements with the US government in December with this in mind.
Amid pressure from the US, investments in Germany are now also under scrutiny, the VFA president said, adding that this makes it all the more important to develop a significant market in Europe as well. He called for lower establishment costs, faster procedures and support for innovation.