Tariffs: Pharmaceutical Federation says “proposal breaks 30-year commitment between governments to protect patients”

After the EU and the US announced they had reached a trade deal, the European Federation of the Pharmaceutical Industry (EFPIA) said publicly that "the proposal breaks a 30-year commitment between governments to protect patients by eliminating tariffs on innovative medicines and their components."

It should be noted that, with the agreement in place, the pharmaceutical industry will be subject to a 15% tariff. Therefore, the EFPIA estimated that the costs of applying tariffs on pharmaceutical exports to the US would be approximately €18 billion. The Federation also noted that, in 2024, the EU pharmaceutical sector exported €120 billion to the US.

In a statement, Nathalie Moll, Director General of EFPIA, said: "We understand the environment in which European policymakers are operating and recognize the efforts to secure a trade agreement for the region that is beneficial to all. With a potential 15% US tariff on pharmaceuticals, no clear path to exemptions for innovative medicines, and no visibility on future trade and pricing policies, we remain concerned about the future of patients and our sector in Europe."

"Adding barriers to complex, highly functional supply chains is not a path to national resilience, increased production, or improved patient care. These barriers hinder our ability to collaborate on discovering new treatments to address global health challenges. As discussions on exemptions continue, we urge the EU and Member States to secure exemptions for innovative medicines to protect patients and ensure the competitiveness of the EU pharmaceutical industry," said Nathalie Moll.

For EFPIA, it is urgent to find "real solutions to increase pharmaceutical investment in research, development and production, rebalance trade and ensure a fairer distribution of how global pharmaceutical innovation is financed and valued."