US President Donald Trump says he will soon announce the “main” definitions of imported drugs, a step that may end decades of low -cost global trade in medicines.
For years, most countries, including the United States, imposed some customs tariffs or non -existent on the final drugs, in part due to the 1995 World Trade Organization Agreement aimed at preserving drugs at reasonable prices.
This transformation comes after Trump presented a 10 % tariff on other imports last week, as part of a wider effort to re -manufacture to the United States.
The new “mutual” definitions – including a 104 % duty of goods that arrive from China – entered into force on Wednesday, intensifying a global trade war and increasing markets.
Pharmaceutical buyers, so far from these measures, are preparing for what may come after that.
The United States usually imports huge amounts of final medications from India, Europe and China without buying customs tariffs – despite the active pharmaceutical components (APIS), which are used in making medicines, face some duties.
Speaking at a donation dinner for his Republican party on Tuesday, Trump said: “We will announce a very large tariff on pharmaceutical products. When they hear that, they will leave China.”
The correspondents also told the Air Force One last week that the “Pharma” tariff would arrive at a level that he had not seen before “, saying that this will be announced” in the near future. “
In 2024, the United States imported 213 billion dollars (168 billion pounds) – more than two and a half decades ago.
Although he shortened the details, his comments rocked buyers, especially those who rely on Indian imports. India provides nearly half of all American drugs, or cheaper versions of popular drugs, providing billions in the country in health care costs.
Indian drugs shares decreased sharply on the news. India sends about a third of $ 13 billion annual drug exports to the United States, a basic market.
Currently, Americans pay a little or non -existent tax on Indian drug imports – compared to the duty of approximately 11 % by Indians who import American drugs.
Indian drug makers warn that the customs tariff will force them to raise prices, which may eventually lead to raising American medical bills. While companies like Cipla and Dr Reddy’s have United States plants, most of them say moving production is not applicable for low -marginal general drugs.
European drug makers are also alert. After a high -level meeting between the President of the European Commission, Ursula von der Lin and the chief pharmaceutical companies on Tuesday, the European Union for Industries and Pharmaceutical Societies (EFPIA) warned that the customs tariff could transform production away from Europe and to the United States.
EFPIA, whose members include major pharmaceutical companies such as Bayer, Novartis and Novo Nordisk – Star Diabees Type 2 OzemPIC – have expressed fears that increasing definitions can disrupt the role of Europe as a major player in the global production of pharmaceutical preparations.
In 2024, the drugs were the largest export of the European Union to the United States, worth $ 127 billion (100 billion pounds).
Great companies have urged the European Union to act quickly, search for changes in politics to enhance Europe’s competitiveness and prevent “collective migration” of the United States. They also expressed their concerns about the possible revenge definitions of the European Union, which can disrupt supply chains and affect patients on both sides of the Atlantic Ocean.
Pharma’s global giants such as GSK and Pfizer work in many countries, including Ireland and Germany, which means that the new customs tariff may disrupt multiple parts of the supply chain.