Trump unilaterally announces high tariffs on pharmaceuticals, causing chaos in EU-US trade agreements

On the 26th local time, the European Commission stated that it has agreed to set a 15% cap on tariffs for American pharmaceuticals, providing protection for European companies. However, U.S. President Trump had previously announced on the 25th local time that starting October 1, a 100% tariff would be imposed on all imported brand-name or patented drugs, once again throwing the U.S.-EU pharmaceutical tariff agreement reached in August into chaos.

Trump stated on social media that companies that have already initiated drug production investments in the U.S. could be exempted. European pharmaceutical giants such as Roche, Novartis, and AstraZeneca have announced expansion projects in the U.S., which could theoretically avoid the new tariffs. However, most European manufacturers face new tariff barriers. Trump emphasized that so-called "groundbreaking" or "under construction" projects would be considered for tax exemption.

The EU and the U.S. had previously agreed to uniformly impose a 15% tariff, excluding generic drugs. European public opinion believes that Trump's actions not only violate the existing agreement but also lack legal basis.

The Brussels-based Innovative Pharmaceutical Group criticized that the EU and the U.S. "have reached an agreement," and Trump's repeated actions severely undermine policy stability. The group's director general, Nathalie Moll, emphasized that both sides should focus on finding reasonable ways to share global R&D costs without harming patient interests. Analysts pointed out that Trump is using tariffs as a political tool to force concessions from countries and raise drug prices, which not only threatens the EU pharmaceutical industry but also directly impacts patient affordability.

On the 26th local time, the Belgian Pharmaceutical Federation also issued a statement saying that the industry expects the EU to respond to Trump's announcement of tax increases. The statement noted that this announcement violates the agreement between the EU and the U.S., and the tariffs could have significant impacts on several EU countries, including Belgium. The statement emphasized that the current uncertainty puts pressure on investment decisions in Europe.

Author: Gu Xin, Source: CCTV News, Original Title: "Trump Unilaterally Announces High Tariffs on Pharmaceuticals, U.S.-EU Trade Agreement Again in Chaos"

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