Insulin, heart treatments, and antibiotics have been exempt from tariffs for decades, allowing them to flow freely across many borders. However, this could soon change under President Trump’s plan to reorder the global trading system and bring key manufacturing industries back to the United States. President Trump has been promising to impose higher tariffs on pharmaceuticals as part of this plan. The move could have serious consequences for drugs made in the European Union, as pharmaceutical products and chemicals are the bloc’s number one export to America. This includes weight-loss drugs, cancer treatments, cardiovascular drugs, and flu vaccines.
European companies may react to these tariffs in various ways, such as increasing production in the United States or raising their prices to cover the tariffs. Some companies have argued that Europe should create better conditions for their businesses by dismantling rules that keep drug prices down. The pharmaceutical sector is also complicated due to agreements with insurance companies and government agencies, making it difficult to rapidly adjust prices for branded drugs. The outcome of President Trump’s plan is uncertain, and experts expect the new tariffs to be around 25 percent, similar to those on steel, aluminum, and cars.
The possible tariffs are particularly worrisome for countries at the center of Europe’s drug industry, like Ireland, where pharmaceuticals make up 80 percent of all exports to the United States. The Irish government has been reaching out to American officials to discuss the issue. Pharma needs more attractive conditions to produce in Europe, according to industry executives. Tariffs on the sector could disrupt supply lines, impair patient access, and have implications for globally interconnected supply chains and availability of medicines for European and American patients alike.
Source: https://www.nytimes.com/2025/04/27/world/europe/tariffs-pharmaceuticals-drugs-medicine-trump.html
