Latest news with #EU-origin
Yahoo
08-04-2025
- Business
- Yahoo
EU president to meet pharma leaders as tariff threat looms
European Commission (EC) President Ursula von der Leyen is set to hold talks with senior pharmaceutical executives today (8 April), as the EU prepares its response to the growing threat of US trade tariffs targeting the drug industry. Senior representatives from major pharmaceutical manufacturers are expected to attend the meeting, alongside trade groups including the European Federation of Pharmaceutical Industries and Associations (EFPIA), EuropaBio, and Medicines for Europe. According to a Reuters report, a focus of the talks will be how to address regulatory hurdles that have contributed to a decline in clinical trial activity within Europe. The meeting comes amid mounting uncertainty over the status of pharmaceutical trade between the US and EU. While the White House confirmed last week that finished pharmaceutical products are currently exempt from the recently imposed 10% blanket tariff, US President Donald Trump stated on 3 April that new tariffs specifically targeting the pharma sector are being considered. 'We are looking at pharma right now, pharmaceuticals as a separate category. We'll be announcing that sometime in the near future – not too distant future. That's under review right now,' Trump told reporters aboard Air Force One. The White House has repeatedly signalled an interest in reshoring pharmaceutical production, a position Trump has supported. Companies such as Johnson & Johnson (J&J) have already announced onshoring plans to bring more manufacturing to the US. The possibility of tariffs on pharmaceutical imports has been floated multiple times, with figures as high as 25% previously proposed. While finished medicines have so far avoided new duties, analysts warn that the broader 10% import tariff could impact pharmaceutical operations straight away. The sector depends heavily on complex international supply chains involving active pharmaceutical ingredients (APIs) and manufacturing equipment. Many of these components are now subject to increased costs, which could disrupt production timelines and pricing structures. Medical devices, meanwhile, have not been spared. A 20% import tariff on EU medical devices has already taken effect, raising concerns about potential damage to the EU's medtech ecosystem. Germany and Ireland – both key exporters of medical instruments to the US – are among the most affected. Last year, EU imports of EU-origin medical instruments were valued at $37bn, according to GlobalData analyst Eoin Ryan. Devices such as respirators, orthopaedic implants, surgical tools, and more – collectively worth $22bn – now face significantly higher import costs. GlobalData is the parent company of Pharmaceutical Technology. Markets responded with some volatility. European markets, including the FTSE 100, rebounded slightly today after a steep drop yesterday (7 April). However, analyst chatter warns that this should not be seen as the end of the trouble; the fallout is continuing following China's public criticism of Trump's tariff strategy. Ryan said that the US decision to delay pharmaceutical tariffs may be tactical. He noted that imposing immediate tariffs could have led to domestic price spikes, which would carry political risk. He also suggested that the US may be keeping pharmaceutical tariffs in reserve as a bargaining tool for future trade negotiations. The analyst said: 'There is certainly anxiety within some EU policymaking circles that President Trump refrained from imposing pharmaceutical tariffs only for the purpose of keeping a gun on the table.' "EU president to meet pharma leaders as tariff threat looms" was originally created and published by Clinical Trials Arena, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
01-04-2025
- Business
- Yahoo
Cognac, Armagnac's caution after French government China talks
Three French spirits trade bodies have warned the potential delay to China's anti-dumping probe of brandy does not change the ongoing negative impact of provisional taxes on Cognac and Armagnac producers. According to reports from Bloomberg and Reuters on Friday (28 March), during his trip, France's Foreign Minister Jean-Noël Barrot told journalists the completion of China's investigation into EU brandy products had been delayed three months. 'This measure should give us a few months' breathing space with the reopening of duty-free sales of Cognac and Armagnac, which represent a significant volume of sales for some brands,' he said in emailed comments to Bloomberg. In a joint statement yesterday (31 March), the Bureau National Interprofessionnel du Cognac (BNIC), Bureau National Interprofessionnel de l'Armagnac (BNIA) and Fédération des Exportateurs de Vins & Spiritueux de France (FEVS) said they had been "informed" about the outcomes of Barrot's visit to China. The three groups said they were aware of an announcement from Chinese authorities that final duties would not be brought into force on 5 April, which "potentially opens the door to another extension of the investigation" to 5 July. They also confirmed being informed about "the possibility of selling the Cognac currently stored in Chinese ports through the duty-free channel". The BNIC, BNIA and FEVS said Cognac and Armagnac industry members viewed the latest developments "positively", but added that "in substance, these developments do not alter the situation for Cognac exporters," give the provisional taxes they have faced on their imports to China since October. In October, China's commerce ministry imposed 'provisional dumping measures' on imports of EU-origin brandy. Since 11 October, companies importing products including brandy have had to pay a security deposit to Chinese authorities upon arrival. The sum of the deposit is equivalent to tariffs recommended by the commerce ministry in August following the release of a preliminary report of its investigation. "For Cognac alone, these taxes have effectively excluded them from their second-largest market, resulting in a 72% drop in shipments, particularly for the month of February 2025 alone," the trade bodies said in their joint statement. China launched its investigation last year after receiving complaints of brandy dumping from the China Liquor Industry Association. The move followed the EU's launch of an anti-subsidy investigation into Chinese electric vehicles in September 2023. The probe has been assessing dumping allegations made between 1 October 2022 and 30 September 2023 for EU brandy imported in containers of under 200 litres. While the BNIC, BNIA and FEVS await the outcome of future Franco-Chinese discussions, they stressed: "It is crucial that this initial sign of openness materialises through the formal extension of the investigation by three months, until July 5, 2025. This additional period must be used to find a diplomatic solution to remove our industry from this economic dispute, to which it is entirely unrelated, and which currently threatens to plunge it into a devastating and historic economic and social crisis." They added that "high-level" negotiations between France and China were due to take place on 15 May, and that the talks needed to focus on "this progress and confirm the visit of our Prime Minister to China to finalise the anticipated agreement that will bring an end to this unjust and unfounded procedure". "Cognac, Armagnac's caution after French government China talks" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
