President Donald Trump warned that tariffs are to be imposed on non-U.S.-based pharmaceuticals.
“We’re going to do something that we have to do: we’re going to tariff our pharmaceuticals. And once we do that, they’re going to come rushing back into our country, because we’re the big market. The advantage we have over everybody is that we’re the big market,” Trump said during a National Republican Congressional Committee (NRCC) dinner.
“So, we’re going to be announcing very shortly a major tariff on pharmaceuticals. And when they hear that, they will leave China. They will leave other places, because they have to sell — most of their product is sold here — and they’re going to be opening up their plants all over the place in our country,” he said, calling the announcement “breaking news.”
“That’s what’s going to happen. What other presidents allowed China to get away with is absolutely criminal. But I’m not like the other presidents — and it’s not going to happen under President Trump. It’s just not going to happen.”
Members of the European Federation of Pharmaceutical Industries and Associations (EFPIA) warned European Commission President Urusula von der Leyen that unless Europe “delivers rapid, radical policy change,” research and development will likely shift to the United States.
“The US now leads Europe on every investor metric from availability of capital, intellectual property, speed of approval to rewards for innovation,” the EFPIA said. “In addition to the uncertainty created by the threat of tariffs, there is little incentive to invest in the EU and significant drivers to relocate to the US.”
As much as 85% of capital expenditure investments are potentially at risk, amounting to an estimated $56 billion. As much as 50% of R&D expenditure valued at 52.6 billion euros, or about $58 billion, may be at risk.
