US tariffs on pharmaceutical imports: vfa sees drastic consequences for patient care

Berlin. The European Union and the United States have reached an agreement in their trade dispute. In the future, almost all European exports of goods to the US – including pharmaceutical products – will be subject to a 15 percent tariff. US President Donald Trump had previously threatened a 30 percent tariff.

There's talk of the "biggest deal," but there's also a barrage of criticism – including from the Association of Research-Based Pharmaceutical Companies (vfa). With regard to the agreement between the EU and the US, the association on Monday called it a "consequential setback for global healthcare and Europe as a center of innovation."

The good news is that an agreement between the US and the European Union is possible, said vfa President Han Steutel. "A trade war would have further escalated the already great uncertainty."

At least no trade war

Nevertheless, the consequences for the pharmaceutical industry are "drastic," Steutel said. The deal also breaks with the foundations on which transatlantic trade is based. "It undermines the rules of the World Trade Organization and puts an end to the achievement of free trade in medicines."

According to the pharmaceutical association, the new tariff could not only lead to significant additional costs for domestic manufacturers and cost jobs in the industry, but it could also jeopardize international patient care.

Securing your location – more important than ever

The "duty-free exchange of medicines" has been an important foundation for smooth supply and close cooperation between the EU and the US for decades. "The EU must urgently take countermeasures – in the interests of securing the location and supply," Steutel explained.

The German Institute for Economic Research (DIW) stated that 15 percent import tariffs on European goods exports to the US would represent almost a tenfold increase in the average tariffs that applied before Trump's second term in office.

It's encouraging that tariffs should not be imposed on selected groups of goods. "Perhaps more products will soon be added to this list of exceptions," says Ruben Staffa, foreign trade expert and research associate at the DIW. (hom)