Antibiotics package and various other drugs on the table in the pharmacy.
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European pharmaceutical companies are in a hurry to prepare for the potential rainfall of import duties in the US, and some create “tariff task groups”, even as analysts warn that fees in the sector can break global trade principles.
Fresenius Medical Care He says that he installed his first “tariff task group” in order to manage uncertainty surrounding the proposed commercial allegations of US President Donald Trump, and some production will probably affect directly.
“We apparently look at what is happening with tariffs in Europe and what also happens with medical equipment tariffs,” CNBC said CNBC “Squawk Box Europe” last week.
“The escalation and speed of this with executive orders are something that we have accumulated quite quickly,” said Giza about the task group.
On Wednesday, President Trump signaled that the European Union may be next to measuring sweeping 25% tariffs on exports to the USA, reflecting similar threats towards Canada and Mexico. A week after Trump said he was considering a flat fee of about 25% in the case of pharmaceutical import, car and chips.
The suggestion caused concern about some analysts who claim that such obligations in the pharmaceutical industry would mean a violation of the principles set out by the World Trade Organization – which counts the US as a member.
Pursuant to the WTO pharmaceutical agreement of 1994, most pharmaceutical products and substances used to produce them are released from tariffs, binding them at service -free levels. However, the Dieser Stadig, a sector economist at ING, said that the recipe may not be enough to prevent the plans of the White House leader.
“I do not think that the WTO violation is sufficient to make the exemption from mutual tariffs,” Stadig said CNBC on Monday, calling the launch of the task tissues of “cautious business movement”.
“It seems that Trump's administration does not really care (if it breaks the WTO rules),” said Soreren Lonoft on Friday, Pharma action analyst in Sydbank in CNBC.
A spokesman for the White House did not immediately answer at the request of CNBC for a comment on the possibility of violating trade. The spokesman for the Secretariat of the WTO said that “does not comment on the specific actions of our members, whether proposed or actual”, but added that participants could raise concerns about the activities of other members or initiate settlement proceedings.
Task tariffs
Uncertainty about Trump's proposal – and their enforceability – is a serious headache for European companies.
European pharmaceutical companies would be one of the most difficult tariffs affected by the sector. The United States used pharmaceutical products worth about $ 560 billion in 2024, of which more than a third were imported, mainly from Ireland, Germany and Switzerland, according to ING calculations.
“These are countries that will be particularly strong, if the threat becomes reality,” wrote Stadig in note last month.
Germany Fresenius Medical Care said that the tariffs would probably go to the group in the field of dialysis machines and consumables to the USA, even if some of the American production in the US remain insulated.
Alcon CEO of David Endicott said that the Swiss-American company dealing with pharmaceutical and medical devices “paid special attention to fees. Despite the limited exposure at a direct import level, Endicott indicated potential fears about the company's supply chains, including the import of raw materials.
“We don't see a large exhibition here, but it's dynamic time,” said CNBC on Wednesday.
Brian McNamara, general director of British Multinational Consumer Healthcare Company HaleonMeanwhile, on Thursday, he said that although most of the American company sales came from domestic production, the company “worked on what impact” tariffs on one of its plants in Canada and several others in Europe.
One of the goals given Trump tariffs It is increasing the national US production, encouraging companies to locate their production. On Monday, the general director of Pfizer suggested that the American drug manufacturer may transfer part of his foreign production to American plants to alleviate higher costs.
“If something happens, we will try to alleviate it by moving from production places outside to production places here,” said Albert Bourla of the annual healthcare conference TD Cowen.
Despite this, economists questioned the logic of such a strategy and the ability of companies to increase their ability in the desired time of the president.
“Building production plants and the use of inactivity producers,” said Stadig. “Secondly, the economics of the scale for general API (active pharmaceutical components) in India and China are so significant that even with a 25% tariff, the production of general API interfaces is not necessarily cheaper in the third USA, it will be difficult to quickly obtain raw materials.”
In the meantime, others warned that additional fees would only be used to increase prices in the already expensive American healthcare sector.
“Many companies have a global supply chain, so in one way or another will harm companies or patients or other members of a fairly complex American healthcare system,” said Lontoft of Sydbank.