President Donald Trump announced on Tuesday (April 8) that the United States will soon impose a “major” tariff on pharmaceutical imports, in a move aimed at encouraging drug companies to shift operations back to the U.S.
Speaking at a National Republican Congressional Committee event, Trump emphasized that the new tariffs will serve as an incentive for pharmaceutical manufacturers to relocate production facilities to the United States. While pharmaceuticals were initially exempt from the broad tariff measures announced last week, Trump confirmed they will now be targeted with separate duties.
The announcement has sparked alarm among European pharmaceutical firms, who raised urgent concerns during a meeting with the European Commission on Tuesday. Industry leaders warned that Trump’s proposed tariffs could accelerate the ongoing shift of pharmaceutical operations away from Europe toward the U.S.
The European Federation of Pharmaceutical Industries and Associations (EFPIA)—representing giants such as Bayer, Novartis, and Novo Nordisk—urged EU Commission President Ursula von der Leyen to take “rapid and radical action” to prevent what they described as a growing “risk of exodus.”
EFPIA called on the EU to reform its regulatory environment to better support innovation and enhance intellectual property protections. These demands echo longstanding warnings that Europe’s pharmaceutical sector risks falling behind the U.S., China, and other emerging markets without urgent legal and structural reforms.
“With the uncertainty created by the threat of tariffs, there is little incentive to invest in the EU and significant drivers to relocate to the U.S.,” EFPIA stated.
A European Commission statement confirmed participation in the meeting by leading firms including Novo Nordisk, Novartis, Fresenius, Sanofi, Bayer, Gedeon Richter, and Ipsen Chiesi. The companies voiced “strong concerns” about the broader implications of U.S. tariffs, including disruptions to global supply chains and potential shortages of medicines in Europe.
Industry representatives also called for more efficient clinical trial procedures, the digitalisation of health systems, and stronger intellectual property protections. They emphasized the need for bold and swift action through upcoming legislative measures—particularly the proposed EU Biotech Act.
The meeting also included contributions from biotech lobby group EuropaBio, the European Confederation of Pharmaceutical Entrepreneurs, and Medicines for Europe, which represents the generics sector.
The U.S. and Europe are closely linked through pharmaceutical supply chains, with Europe exporting approximately €90 billion (US$97.05 billion) worth of medical and pharmaceutical products to the U.S. in 2023, according to Eurostat.
Several European pharmaceutical giants have already expanded their production footprints in the U.S., which remains the world’s largest pharmaceutical market. North America accounted for nearly 50% of global pharmaceutical sales in 2021, compared to roughly 25% for Europe, EFPIA data shows.
