Pharma Giants Advocate Against Tariffs: Saving Medicines from a Trade War

Pharmaceutical companies are urging the U.S. and EU to avoid tariffs on medical goods. They warn of increased drug prices and restricted access, pointing to supply chain dependencies. While the U.S. reviews trade policies, the industry seeks manufacturing expansions in the country, citing potential barriers from tariffs.

Pharmaceutical companies are making a strong case to both the Trump administration and European Union officials, asking to exclude medical goods from any new tariff impositions. They argue that including these goods could cause price surges on crucial medications such as Novo Nordisk's Wegovy and Merck's Keytruda, manufactured in Europe.

Industry insiders highlight that tariffs could elevate drug prices and reduce accessibility for patients, contradicting the objectives set forth in President Trump's health directives aimed at reducing drug costs and enhancing American life expectancy. Discussions have also included boosting U.S. production capabilities, pending regulatory and tax incentives.

Executives are voicing their concerns to EU officials, stressing that retaliatory tariffs could sever critical supply chain linkages. Highlighting the historical exemption of pharmaceutical products from trade disputes, they argue the continuation of such practices is crucial to maintaining patient access to essential medicines.

(With inputs from agencies.)