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trump dismantles international pharmaceutical trade....

 

The decision by the United States to introduce 100% tariffs on pharmaceutical products starting October 1 is emerging as one of the most serious challenges for Germany and Europe in recent years. The move is viewed not only as a blow to European manufacturers’ economic interests but also as a threat to the stability of the global healthcare system.

 

BY DMITRY SUDAKOV

USA Readies to Crush European Pharmaceutical Industry

 Industry Voices Concern Over Supply Chains

The German Association of Research-Based Pharmaceutical Companies (VFA) has already expressed alarm over the planned measures. Industry representatives warn that such sweeping trade barriers will dismantle well-established international supply chains. The consequences, they argue, will include rising production costs, reduced access to life-saving medicines for patients in both the US and Europe, and major disruptions in global drug distribution.

Pharmaceuticals are a high-tech sector requiring constant investment in research and development. Any freeze in investment, which is already occurring in anticipation of the tariffs, could undermine Europe’s competitive position in the global market.

Germany Faces a Direct Hit

The decision is particularly painful for Germany, where around 130,000 people are employed in the pharmaceutical sector. A significant portion of production is exported to the US, which in 2024 accounted for €27 billion worth of German pharmaceutical exports — roughly one quarter of the country’s total. With the US as Germany’s largest external market, any restrictions directly endanger jobs, tax revenues, and innovation potential.

Trump’s Protectionist Agenda

The administration of President Donald Trump, prioritizing protectionism and domestic production, has made reducing dependence on foreign supply chains a central goal. At the same time, it seeks to address domestic political pressure by cutting drug prices. A decree signed by Trump in May aims to reduce the cost of pharmaceuticals in the US by 59–90%. However, instead of reforming the healthcare system or lowering administrative costs, Washington is applying pressure on foreign producers and incentivizing localization of production.

The 100% tariffs on branded and patented medicines effectively double import costs. Exemptions exist only for companies already building factories in the US, creating a strong incentive for multinational corporations to relocate production across the Atlantic.

Europe’s Strategic Weakness

While this policy may boost US domestic production, it simultaneously weakens European economies, particularly Germany and Switzerland, which are long-standing pharmaceutical hubs. Beyond the direct economic impact, Europe faces a deeper strategic vulnerability. The EU’s market of 450 million consumers has enormous potential but remains fragmented into 27 national markets with varying rules on regulation and pricing. This fragmentation undermines competitiveness compared with the more unified US market.

As a result, Europe risks becoming a “pawn on the global chessboard” between the two major economic blocs of America and Asia. The introduction of US tariffs may accelerate this trend, leaving Europe with weakened leverage in global trade and healthcare security.

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https://english.pravda.ru/world/164272-us-tariffs-german-pharma-crisis/

 

PBS blow....

Donald Trump has announced that the United States will slap a 100 per cent tariff on  any pharmaceuticals entering the US from next week. 

The US President said will impose a 100 per cent tariff on all imports of branded or patented pharmaceutical products from October 1, unless a pharmaceutical company is building a factory in the US.

It comes just 36 hours after Anthony Albanese managed to snag a selfie with Trump. 

The two men are due to have their first one-on-one meeting on October 20 and securing a tariff exemption will no doubt be top of the Prime Minister's agenda given pharmaceuticals are one of Australia's largest exports to the US. 

'Starting October 1st, 2025, we will be imposing g a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,' Trump posted on Truth Social. 

'"IS BUILDING" will be defined as, "breaking ground" and/or "under construction." 

'There will, therefore, be no Tariff on these pharmaceutical products if construction has started.'

The US President also introduced a range of other tariffs, including a 50 per cent import tax on kitchen cabinets, 30 per cent on upholstered furniture and 25 per cent on heavy trucks.

He insisted the move was to protect US manufacturers from 'unfair outside competition'.  

'The reason for this is the large scale "FLOODING" of these products into the United States by other outside Countries,' Trump posted on Truth Social. 

'It is a very unfair practice, but we must protect, for National Security and other reasons, our Manufacturing process. Thank you for your attention to this matter!'

Australia exported $2.2billion in pharmaceutical products to the US last year.

This equates to around 40 per cent of Australia's total pharmaceutical exports, according to the United Nations Comtrade database. 

However, the vast majority of those exports relate to one Australian company, CSL.

CSL sends vast quantities of plasma and other blood products to the US, according to the ABC. 

healthcare stocks were down -1.7 per cent with CSL shares at a five-year low, according to CommSec. 

Health Minister Mark Butler said the government was 'working to understand the implications of the announcement'. 

‘None of these latest announcements from the US administration make a jot of difference to our determination to protect he PBS,' he told reporters on Friday afternoon.

‘The PBS has served Australians so incredibly well in terms of providing affordable access to the world’s best medicines we are determined to do everything to protect that PBS.’

Trump has previously vented his frustration that drug companies are able to sell pharmaceuticals cheaper to other countries under programs like the Pharmaceutical Benefits Scheme (PBS).

Prime Minister Anthony Albanese has previously insisted that tariffs were an 'act of economic self-harm' and has said the PBS is off limits.

'This is not for sale and is not up for negotiation. This is a part of the free trade agreement (with the US) because Labor insisted as a condition of our support for the free trade agreement,' Albanese said in March.

'The Pharmaceutical Benefits Scheme is a part of who we are as Australians and we will always stand up for it.'

The Daily Mail has contacted the Department of Health for comment. 

In a joint statment from Opposition Leader Sussan Ley, Shadow Health Minister Anne Ruston and Shadow Trade Minister Kevin Hogan, the Coalition said they strongly opposed the 'harmful tariffs'.  

'The 100 per cent tariff announced today puts this critical trade at risk, as well as the jobs thousands of people it employs and the savings Australians have invested in this sector,' the statement said. 

'Australia has an export trade in pharmaceuticals to the US valued at over $2 billion.

'This is a shocking but unsurprising development and it is moments like this when a strong direct relationship with the President of the United States is critical to help save Aussie jobs. 

'While other leaders are able to pick up the phone to the President, Anthony Albanese has not established such a relationship.'

https://www.dailymail.co.uk/news/article-15135489/Trumps-devastating-new-100-cent-tariff-blow-Australia-just-days-posed-grinning-selfie-Albo.html

 

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         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.