Trump threatens to end the exemption from pharmaceuticals

US President Donald Trump says that he will soon announce “large” tariffs for imported pharmaceuticals, a step that could end the decades of global trade in medicines with favorable global trade.

For years, most countries, including the United States, have imposed only a few or no tariffs for finished drugs, which partly aims to keep medication affordable in 1995.

This shift takes place after Trump introduced a tariff of 10% to other imports last week to bring production back to the USA.

His new “mutual” tariffs – including an obligation of 104%, who came from China – came into force on Wednesday, which intensified and further shake a global trade war.

Pharmaceutical buyers who have been spared from such measures are now preparing for what can come next.

As a rule, the United States has imported large quantities of finished medication from India, Europe and China without buyers paying tariffs – although active pharmaceutical ingredients (APIs) that are used to produce drugs are subjected to some duties.

Trump spoke on Tuesday at a donation meal for his Republican party: “We will shortly announce a large tariff for pharmaceuticals. And if you hear that, you will leave China.”

He told the reporters on board his aircraft last week that “Pharma” tariffs “would arrive at a level that they haven’t really seen” and said that they would be announced “in the near future”.

In 2024, the USA imported medication worth $ 213 billion (£ 168 billion) – more than two and a half times a decade before.

His comments worked shortly before the detail, especially those who rely on Indian imports. India delivers almost half of all US generics or cheaper versions of popular medication, which saves the country of health costs.

The Indian pharmaceutical stocks were strong in the news. India sends about a third of its annual pharmaceutical exports of $ 13 billion to the USA, which is a key market.

At the moment, the Americans pay little or no tax on imports of Indian medication – compared to almost 11%paid by Indians, imported American medication.

Indian drugmakers warn that the tariffs would force them to increase prices, which could ultimately increase the US medicine bills. While companies like Cipla and Dr. Reddy US plants have, most people say that movement for movement is not profitable for generics with low margins.

European drug manufacturers are also attentive. After a high -ranking meeting between the President of the European Commission, Ursula von der Leyen, and the top pharmaceutical company on Tuesday, the European Federation of the Pharmaceutical Industry and Association (EFPIA) warned that tariffs could shift the production of Europe and the USA.

The EFPIAS, to whose members important pharmaceutical companies such as Bayer, Novartis and Novo Nordisk – the manufacturer of the Star -2 drug of Star Diabetes Type 2 – include that increasing tariffs could disturb the role of Europe as the key player in global pharmaceutical production.

In 2024, the pharmaceuticals were the greatest export of the EU to the United States, which has reported a reported USD 127 billion (100 billion GBP) worth.

Large companies have asked the EU to act quickly to apply for political changes to improve the competitiveness of Europe and prevent “mass exodus” for the United States. They have also expressed concerns about potential EU reference tariffs that interfere with the supply chains and could influence patients on both sides of the Atlantic.

Global pharmacists such as GSK and Pfizer are operating in several countries, including Ireland and Germany, which means that new tariffs could interfere with several parts of the supply chain.