(MENAFN) U.S. President Donald Trump’s move to enforce 100% tariffs on patented or branded medications produced overseas could strike a “heavy blow” to German drug manufacturers, as per the Berlin-based pharmaceutical industry association, Verband Forschender Arzneimittelhersteller (vfa).

According to vfa, the announcement defies earlier trade arrangements between the U.S. and EU, which had previously capped such duties at 15%.

Rolling out these steep import taxes may have a “serious impact on international supply chains”, potentially raising production costs and putting patient treatment at risk in both Europe and the United States, the group stated on Friday.

Han Steutel, head of the vfa, remarked that company investments are “already being frozen,” adding that “this is the last thing Germany needs right now.”

He added that the move undermines existing trade pacts, stressing the urgency of finding effective and timely solutions to support European companies, which is crucial for the continent and for Germany under current conditions.

Steutel underscored that “a sovereign, strong Europe” is necessary to balance out the rising economic dominance of the United States.

He pointed out that while the EU represents a market of 450 million people, it is divided across 27 member states, whereas the U.S. “can take care of 300 million people in one fell swoop.”

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