Donald Trump’s decision to share duties has caused concern all over the world, but to the present drugs seem to be not affected.
Pharmaceutical companies in Europe – and especially those with close relationships with the US – can take a temporary breath, as medicines were just excluded Last minute from Donald Trump’s new duty wave.
In Brussels, however, concern remains as they expect Washington’s next move.
According to a White House announcement, medicinal products were excluded – for the time being – from the mutual duties activated by the Trump government in the context of the war it declared in the world markets. Along with the medicines were excluded products such as copper, microchips, timber and energy.
Remains the ‘orange’ alarm
Pharmaceuticals, however, are considered a strategic sector by the Trump government and are therefore targeting.
“We are not sure that we can breathe with relief”, He said a high -ranking European official, signaling that nothing was over.
Already in February, Trump had warned of 25% duties on medicines, bringing an “orange alarm” to the pharmaceutical market and multinationals that are strongly active in Europe.
Ireland, Denmark, Belgium and Germany are the countries that seem to remain more exposed as they host largest giant factories, such as: Pfizer, Johnson & Johnson, Eli Lilly, Bristol-Myers Squibb and Abbi.
Medicines: EU Number 1 Export Product to the USA in 2024
It is not excluded, US President Donald Trump have excluded drugs at present from dutiesas a negotiating paper that intends to exploit in the second year, in the context of the raging trade war.
This is because only the US was introduced by $ 127 billion worth of drugs from Europe last year. It is an astronomical amount, which if “frozen” due to duties could have a strong blow to patients, businesses and entire national economies.
In more detail:
Belgium exported a total of $ 73 billion in medicinal products only in the first ten months of 2024, with 25% of them ending in the US. The pharmaceutical industry accounts for 15% of the country’s total exports.
Ireland, with 45,000 workers in the industryit has been transformed into a production center for US companies, the result of a policy that started on … Trump, which provided 2017 “tax package” to pharmaceutical companies along with the opportunity to transfer their productions to countries with lower taxation.
“If duties are finally imposed, Ireland is in danger of being seriously affected,” warns Law Professor Billy Melo Araujo.
The fears of the sequel….
The Commission is already preparing. On Tuesday, Ursula von der Layen convenes an emergency meeting with representatives of the pharmaceutical industry in Brussels, emitting the message of “non -compassion”.
“The pharmaceutical sector is of strategic importance to Europe and we will do whatever we need to protect it,” says a European official.
The US, on the other hand, seems to be re -industrializing five “strategic sectors”: cars, metals, timber, medicines and microchip.
The first three sectors have already been affected by duties and everyone is wondering if the medicines and microchips will follow.
Source Iatropedia.gr