Experts from the pharmaceutical industry have strongly advised the European Union against retaliating against the proposed imposition of U.S. tariffs on drugs and medicine. Reports from Brussels on Friday, 27 June claimed that the European Federation of Pharmaceutical Industries and Associations (EFPIA) urged the EU not to hit back if President Donald Trump brings in promised tariffs on imported drugs, a move that could commence next week.
Trump is operating under a self-imposed July 9th deadline for new trade deals with the EU and about 60 countries. Without one, European pharma could face high levies. EFPIA president Stefan Oelrich advised against a trade war, stating
We’re shipping a lot of exports out of the U.S. into Europe … If we add tariffs to that, it’s going to be negative for both sides. If we reciprocate on tariffs, it’s just a bad idea. It’s a bad concept.
While the industry links some of its difficulties to EU regulation and competition from the U.S. and China, its representations are making it clear that being drawn into a trade war is not part of the solution. Meanwhile, Trump, buoyant from his apparent win in making NATO members commit to their own greater funding of the alliance, may opt for a ‘thin’ treaty with Brussels that prioritises the automobile and steel trades, leaving pharma further disadvantaged.
