UPDATE: With looming Trump tariffs, pharma companies demand changes to stay in EU
Title
Pharma Giants Demand EU Reforms Amid Looming Trump Tariffs and Threat of Industry Exodus
Keywords
- Trump tariffs
- pharmaceutical industry
- EU policy
- drug manufacturing
- trade war
- regulatory reforms
- intellectual property
- Section 232 investigation
- EU pharmaceutical investment
- drug pricing
- wastewater directive
- supply chains
- U.S.-EU trade relations
Key Facts
- Over 30 major pharmaceutical companies—including Amgen, AstraZeneca, Pfizer, Novartis, and GSK—have formally called on the European Commission to enact sweeping policy changes to retain their operations in the EU as U.S. President Donald Trump pushes for tariffs on imported drugs14.
- The companies warned that, without “rapid, radical” EU reforms, a significant portion of pharma research, development, and manufacturing could relocate from Europe to the U.S., potentially costing the EU up to €103.2 billion ($113 billion) by 2029 in lost investment14.
- CEOs urged the EU to reconsider drug pricing policies, streamline drug development regulations (proposing a single-approval process for multi-country trials), and enhance protections for intellectual property, such as increasing regulatory data protection and orphan market exclusivity1.
- The pharma industry also requested relief from a new EU wastewater treatment fee, linked to environmental regulations that could cost manufacturers billions in compliance1.
- Trump’s administration has announced a 10% blanket tariff on all imports, with sector-specific tariffs—including on pharmaceuticals—imminent. A Section 232 national security investigation into pharma imports is underway, likely to justify higher tariffs on drug imports from the EU234.
- Trump has positioned the tariffs as necessary to reshore drug manufacturing and reduce reliance on foreign producers, arguing this is a national security issue23.
- Industry groups claim the U.S. market is more attractive for investment, citing higher drug prices, better IP protection, faster regulatory approval, and more capital availability compared to the EU4.
- If large-scale relocation occurs, EU countries could lose up to 85% of capital investments and up to 50% of R&D spending from the pharmaceutical sector between 2025 and 2029, representing a potential €164.8 billion loss4.
- Analysts warn that such tariffs could disrupt global medicine supply chains, reduce pharma profit margins (potentially impacting R&D), and—depending on how companies respond—could affect drug prices and availability worldwide5.
- The regulatory and trade uncertainty has already led to volatility in stock prices for major drugmakers, with further consequences likely as policy details emerge5.
These developments underscore ongoing tensions in global pharma trade and the critical leverage that both policy and tariffs hold over the future geography of pharmaceutical research, production, and investment.
Sources:
1. https://www.fiercepharma.com/pharma/looming-trump-tariffs-pharma-companies-demand-changes-stay-eu
2. https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/
3. https://www.politico.eu/article/us-donald-trump-pharma-tariffs-drug-production/
4. https://www.biospace.com/policy/with-tariffs-looming-eu-and-us-pharmas-make-demands-of-european-commission
5. https://www.the-independent.com/news/business/tariffs-pharmaceuticals-trump-nhs-gsk-astrazeneca-ftse-b2731595.html