European Pharma Faces U.S. Tariff Challenge, Prompting Calls for EU Action

European pharmaceutical companies are urging the European Union to enact systemic changes to counter the impact of U.S. tariffs, which threaten to shift the industry's focus toward the United States. With pharmaceuticals potentially facing separate tariffs, Europe's regulatory framework and intellectual property laws are under scrutiny to ensure continued innovation and investment.

European pharmaceutical companies warned the European Commission that U.S. tariffs could accelerate their shift away from Europe. The EFPIA, a leading trade group, urged EU President Ursula von der Leyen to take decisive action to prevent an exodus to the United States.

Despite being initially exempt, pharmaceuticals may face separate U.S. tariffs. The EFPIA argues that Europe's regulatory framework needs reform to promote innovation and secure intellectual property rights, cautioning against the increasing competition from the U.S., China, and emerging markets.

The recent tariffs and proposed EU countermeasures on U.S. goods highlight the intertwined supply chains for pharmaceuticals between the regions. With the U.S. as their primary market, European pharmaceutical giants stress the urgent need for strategic policy adaptations.

(With inputs from agencies.)