European pharmaceutical firms have cautioned EU leaders that a “exodus” from Europe to the US may result from Donald Trump’s tariffs.
At a meeting on Tuesday, the head of the European Commission was cautioned about the possible change.
The European Federation of Pharmaceutical Industries and Associations (EFPIA), a trade group for pharmaceuticals, said it had urged EU President Ursula von der Leyen to advocate for “rapid and radical action” to reduce the “risk of exodus” to the US.
President Donald Trump has warned that pharmaceutical companies could soon face separate tariffs
US President Donald Trump last week slapped sweeping taxes on US imports, although he cautioned that pharmaceuticals would be subject to separate duties.
European pharmaceutical behemoths Bayer, Novartis, and Novo Nordisk are among the members of the EFPIA, which stated that the EU must modify its industry regulations to foster innovation and fortify its intellectual property laws.
If the EU does not change a proposed overhaul of legislation controlling the pharmaceutical industry, the EFPIA has warned repeatedly that Europe’s pharmaceutical industry will lose out to growing competition from the US, China, and emerging countries.
According to the EFPIA statement, “there is little incentive to invest in the EU and significant drivers to relocate to the US now with the uncertainty created by the threat of tariffs.”
The meeting was attended by the CEOs of pharmaceutical companies with headquarters in the EU, the generics trade group Medicines for Europe, and the biotech lobby Europabio.
EU President Ursula von der Leyen (pictured) has been urged by the EFPIA to advocate for “rapid and radical action” in order to reduce the “risk of exodus” to the United States.
However It is known that Sandoz, the biggest generics manufacturer in Europe, wasn’t.
The pharmaceutical supply chains in the US and Europe are intertwined. The United States relies on medications that generate hundreds of billions of dollars in revenue and are partially made in Europe.
According to the most recent Eurostat data, EU exports of pharmaceutical and medical products to the US reached over 90 billion euros ($97.05 billion) in 2023.
Recently, major European pharmaceutical companies have started increasing their production facilities in the United States.
According to sales, the US is the largest pharmaceutical market for large pharmaceutical companies, including those with headquarters in the US and Europe.
According to EFPIA, sales of pharmaceuticals in North America made up almost half of global sales in 2021, while sales in Europe made up only about 25%.
On Monday, The European Commission planned counter-tariffs of 25 per cent on a variety of US goods, including soybeans, nuts and motorcycles.
