Latest news with #National Security
Yahoo
7 days ago
- Business
- Yahoo
New US-EU trade deal on tariffs ends pharma's geopolitical immunity
For the first time in decades, the pharmaceutical industry has been directly affected by a geopolitical trade negotiation between the US and the EU. On 27 July, the US government announced a 15% tariff on branded pharmaceutical products imported from the EU. Despite the decrease from the original 30% tariff on pharmaceuticals earlier in the year, this disrupts a long-established practice of the exemption of medicines from tariffs due to their importance in public health. The 15% tariff is not expected to happen immediately as implementation will be dependent on a National Security investigation regarding pharmaceutical imports. This trade deal puts the pharmaceutical industry at risk of losing between $13bn and $19bn, with consequences that extend beyond short-term financials. It will force pharmaceutical companies to make a tradeoff between tightening their profit margins and increasing drug prices, with both paths posing a risk to patient access and payer relations. The imposition of tariffs threatens to elevate costs across the pharmaceutical value chain, and could lead to a substantial increase in drug development costs, manufacturing, and distribution, with global supply chains for active pharmaceutical ingredients (APIs), raw materials, and equipment directly exposed. This disruption could create uncertainty in launch planning, particularly for late-stage assets with EU-based manufacturing and production planned for US entry. Companies manufacturing pharmaceutical products in Europe will need to anticipate financial exposure when planning launches in the US due to the unfavourable gross-to-net dynamics, weakened pricing leverage with US payers, and slower commercial uptake as insurers reassess cost-effectiveness due to the tariffs. Research and development budgets are already under pressure, and may be further strained as pharmaceutical companies may have to divert budget to firefight the impact of the tariffs. This could hinder innovation and pipeline investment, reducing the much-needed pace of therapeutic innovation across the industry. Earlier in the year, the US administration did signal tariffs for pharmaceutical imports could become a real possibility; this was met with proactive US investment from leading pharmaceutical companies to onshore manufacturing in the US to reduce exposure. Most recently, in July 2025, Biogen announced a $2bn investment into North Carolina, strengthening its US manufacturing position. Other pharmaceutical companies such as Johnson & Johnson, AstraZeneca, and Eli Lilly have also increased their investment in US manufacturing, with investments of $55bn, $50bn, and $27bn, respectively. Ultimately, the recent US-EU trade deal has increased the level of uncertainty within the pharmaceutical industry, raising concerns about the potential of tariffs increasing past 15% in the future. A once-shielded sector is facing a geopolitical shift, leaving the pharmaceutical industry vulnerable to global volatility. "New US-EU trade deal on tariffs ends pharma's geopolitical immunity" 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.
News24
30-07-2025
- Politics
- News24
MK Party squares off against Ramaphosa in ConCourt over Mchunu's special leave
5m ago Mpofu points out that Ramaphosa fired DA Deputy Minister Andrew Whitfield for going to the US without proper persmission, but he placed Mchunu (who is facing far more serious accusations) on special leave. MK Party deputy president John Hlophe, speaking in Parliament, drew a sharp contrast in how Ramaphosa treated Whitfield compared to Mchunu. He called it a case of 'selective accountability'. - Karyn Maughan 6m ago According to the MKP, Mkhwanazi's accusations "raise urgent and serious concerns around the Constitution, the Rule of Law and National Security". While Ramaphosa said he had placed Mchunu on special leave to allow the Madlanga Commission to properly investigate these claims, but Mpofu says questions need to be raised whether "another multibillion rand commission" was "in the best interests of our people". Is it in the best interests of the people to have two Police Ministers, he asks, with one "sitting at home" while the other serves in an acting position. - Karyn Maughan 15m ago Mpofu says the leave of absence granted to Mchunu is central to the MKP's case, because if it had not been granted, there would be no need to appoint Cachalia in an acting position. If the MKP is correct that Ramaphosa does not have the power to place a minister on such a leave of absence, he says, questions about the rationality of that decision "do not arise". - Karyn Maughan 15m ago 26m ago The hearing has started. The advocates involved in the case have introduced themselves. MKP advocate Dali Mpofu begins his argument for the party. - Karyn Maughan 26m ago The hearing has started. The advocates involved in the case have introduced themselves. MKP advocate Dali Mpofu begins his argument for the party. - Karyn Maughan 28m ago This morning the Constitutional Court will hear the MK Party's urgent challenge to President Cyril Ramaphosa's decision to place Police Minister Senzo Mchunu on special leave and appoint Professor Feroz Cachalia as an acting minister. It is also challenging the establishment of the Madlanga Commission of Inquiry. - Karyn Maughan Go to top
