Trump’s Pharma Tariffs Deal Blow to German Pharmaceutical Sector

(MENAFN) A sweeping new tariff move by U.S. President Donald Trump has triggered alarm across the European pharmaceutical sector, with Germany’s powerful industry group warning of severe global repercussions.

Trump on Thursday declared via the Truth Social platform that branded or patented pharmaceutical products manufactured outside the U.S. would now face a 100% customs tariff, unless the producing company has already initiated U.S.-based manufacturing operations.

The decision follows an April U.S. Commerce Department national security investigation into pharmaceutical imports and is being framed by the administration as part of a broader push to reduce foreign dependency, tighten supply chains, and repatriate drug manufacturing.

According to the Berlin-based Verband Forschender Arzneimittelhersteller (vfa), the announcement marks a drastic escalation in trade tensions that could significantly disrupt global health systems. “Heavy blow” was how the vfa described the impact on German pharmaceutical companies in a statement released Friday.

The move, the vfa said, “contradicts previous agreements between the US and EU, which had capped tariffs at 15%.”

The group warned that the new tariff regime could deliver a “serious impact on international supply chains”, drive up manufacturing costs, and endanger patient care both in the US and in Europe.

Han Steutel, president of the vfa, voiced growing concern from the sector: “Investments are already being frozen,” adding, “this is the last thing Germany needs right now.”

Steutel also questioned the integrity of existing international trade frameworks: “This decision calls into question the existing trade agreements.” He stressed the urgency of protecting European industry, stating, “Finding quick and robust solutions to help European firms is key for both Europe and Germany in this climate.”

He further emphasized Europe’s economic potential if unified, warning against political fragmentation. “A sovereign, strong Europe” is essential to counterbalance U.S. economic dominance, he said. While the EU market spans 450 million people, it remains fractured across 27 countries, unlike the U.S., which “can take care of 300 million people in one fell swoop.”

Criticizing the EU’s current economic posture, he concluded that it has become “a pawn” in global economic power plays.

The United States is the largest export destination for German pharmaceuticals, underpinning roughly 130,000 jobs in the sector. In 2024, German pharma exports to the U.S. reached €27 billion ($31.5 billion), according to vfa figures.

The new tariffs mark a dramatic pivot in pharmaceutical trade policy and are likely to provoke a strong response from the European Union, as industry leaders warn of ripple effects across supply chains, pricing, and public health infrastructure.

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