Trump to ‘probably' impose pharma tariffs in August, urges EU investment
Trump said on Tuesday that the announcement would come 'probably at the end of the month, and we're going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we're going to make it a very high tariff'. Tariffs would come into effect on 1 August.
The US president has argued that slapping tariffs on EU pharmaceuticals – a major export for the bloc – would bring manufacturing back to the US. He has previously stated that the levies could gradually increase to 200% after giving drugmakers about a year to bring manufacturing back to the US.
Some are already on their way. In April, Swiss pharma player Roche signalled a $50 billion (€44 billion) investment in the US over the next five years.
Stefan Schneider, a long-time pharma analyst at Swiss investment house Vontobel, told Euractiv in an interview that these announcements, like Roche's, are merely reiterations of investments that had already been planned in the US.
According to several sources, Euractiv has also learned that Trump's strategy has been to contact pharmaceutical companies 'individually' – leaving the industry at large in the dark.
Nathalie Moll, director general of the Innovative Pharma Association Efpia, stressed: "Regardless of what is down the line, Europe needs to focus on making improvements to its own operating environment." She added: "We need wholesale changes to promote a fairer global distribution of contributions to R&D, increased investment in medicines, and fairer and faster access for our patients."
Maroš Šefčovič, the EU trade chief, has said the bloc wants a 'negotiated solution' by 1 August and said he was on his way to Washington on Wednesday. Whatever the outcome, Trump's signal to attract EU pharma investments is clear.
(bms, aw)
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