US tariffs seen as threat to European pharma production, industry says

"In the medium term, there is a risk that parts of production and research will move to the US," where regulatory and financial incentives are attractive, said the Association of Research-Based Pharmaceutical Companies (VFA) in Berlin.

The Swiss association Interpharma warned of negative consequences for patients.

The US administration seeks to encourage pharmaceutical companies to set up operations in the US by imposing a 100% surcharge.

However, Germany and all other EU member states, as well as Switzerland, Japan and South Korea, are exempt from this due to separate agreements. Tariff rates of up to 15% apply to them.

Nevertheless, the pharmaceutical associations view the new measures as a massive intervention in the medicines market.

The tariffs "jeopardise global production and supply chains for medicines, hinder research and development, and ultimately harm patients worldwide", Interpharma warned.

Individual manufacturers can avoid tariffs by increasing investment and production in the United States and by lowering their prices there.

Among others, the Swiss industry giants Novartis and Roche concluded agreements with the US government in December with this in mind.

Amid pressure from the US, investments in Germany are now also under scrutiny, VFA President Han Steutel said, adding that this makes it all the more important to develop a significant market in Europe as well.

He called for lower establishment costs, faster procedures and support for innovation.