Pharmaceutical brackets in Europe, where the Trump tariff threat waving

Insulin flow, heart treatments and antibiotics freely across many borders for decades, Exempt Trying to make medicine affordable. But this can change soon.

For several months, President Trump was a promise to impose a higher tariff on medicines as part of his plan to rearrange the global trading system and return the major manufacturing industries to the United States. This month, the pharmaceutical definitions said It can come In the “non -far future”.

If they do so, this step will have dangerous consequences – very unconfirmed – on the drugs that were exposed to the European Union.

Pharmaceutical products and chemicals are the mass No. 1 export To America. Among them is Eugemic, cancer treatments, cardiovascular medications and influenza vaccines. Most of them are brand medications that make a great profit in the American market, with high prices and large numbers of consumers.

“These are critical things that keep people alive,” said Leah Overit, who heads Boyk’s international affairs, said the European Consumer Organization. “Their position in the middle of the trade war is worrisome.”

European companies can interact with Mr. Trump’s tariff in a set of roads. Some pharmaceutical companies that are trying to avoid definitions have already announced plans to increase production in the United States, which Mr. Trump wants. Others can decide to transfer production there later.

Other companies seem to be in their position, but they may raise their prices to cover the tariffs, which increases patients ’costs. High prices can affect not only for American consumers, but also patients in Europe. Some companies started Argue Europe must create more suitable conditions for its work by dismantling some of the rules that maintain medicine prices.

Or some middle floor can play: companies may transfer their financial profits to the United States for accounting purposes to avoid import fees, even while leaving their material factories abroad to avoid moving expenses and challenges represented in creating new supply chains.

Mrs. Aufret Group warned European officials that they should not return to an attack on the important industry by tariff for American drugs in return: Tit for Tat will come at a very dangerous cost for European consumers.

But the pharmaceutical sector is complex. It can make agreements with insurance companies and government agencies that are difficult to quickly control the prices of branded drugs, while government regulations can make the challenge of challenge and long -term commitment. The result is that no one can predict confidence in the result.

“We have not recognized medicines for a very long time,” said Brad W. Cedar, an economist in the Foreign Relations Council who has studied closely the tax rules that stimulate production abroad.

Although Mr. Trump has stopped the so -called “mutual” tariffs in favor of a comprehensive rate of 10 percent during the stoppage period, he left some definitions of the definitions of the industry and shows that computer chips and pharmaceutical products will be the following. The United States recently Investigations started In both sectors, a first step towards hitting them with definitions.

Many industry experts expect the new definitions to be 25 percent, in line with those in steel, aluminum and cars.

For countries in the midst of the pharmaceutical industry in Europe, possible definitions are particularly worrying. This is especially true for Ireland, as medicines make up 80 percent of all exports to the United States.

Many pharmaceutical companies have originally moved to Ireland because they provide very low tax rates. But it also worked on developing its own pharmaceutical industry and providing access to a highly highly impressive workforce.

In recent years, the sector has grown quickly. more than 90 pharmaceutical companies Its headquarters is now there, according to Foreign Investment Agency in IrelandAnd many of the largest American drug makers have operations in the country. Last year, the pharmaceutical industry was exported in Ireland 58 billion eurosOr about 66 billion dollars, in the pharmaceutical and chemical products of the United States.

“The Irish are smart, yes, smart people,” said Mr. Trump in March, while Prime Minister Michel Martin from Ireland was visiting the White House. “Our pharmaceutical companies and other companies have taken,” he said. “This beautiful island, which includes five million people, got the entire American pharmaceutical industry in its understanding.”

Now, tariff fees can get rid of the benefits of manufacturing there – the goal of Mr. Trump.

“In the United States, we no longer put our drugs,” said Mr. Trump from the Oval Office.

Companies are already preparing. Companies were accelerating to export their drugs from Ireland and to the American market before the glove decreased, Statistics indicate.

Also, Ireland was not affected by the only country. Germany, Belgium, Denmark and Slovenia are also The main exporters.

“It is an enormous issue for Europe,” said Benny Nass, who leads a competitive program for the research tank for the German Marshall Fund, and has long worked in European public policy and corporate affairs.

European leaders have been contacted with both American officials and industry. In addition to the recent Irish Prime Minister’s visit to the Oval Office, Irish Minister of Foreign Affairs traveled to Washington to meet the Minister of Commerce.

Ursula von der Lin, President of the European Commission, met the executive arm of the European Union, in Brussels with the European Union for Industries and Pharmaceutical Societies, the lobby group that represents the largest pharmaceutical maker in Europe.

The industry takes advantage of the moment when the elements of the wishes are paid, such as the lower red tape.

European drug reaction group told Mrs. von der Lin that companies can transform production or investment towards the United States to reduce their exposure to Mr. Trump’s definitions, especially when the fastest and ease of access to capital makes America more attractive.

At least 18 members of the group, which include Bayer, Phazer and Mirch, are approximately 165 billion euros of investments in the European Union over the next five years. Al -Ittihad said that half of that could turn to the United States. Nor is he alone in this prediction.

“Pharma needs more attractive conditions for its production in Europe,” said Dorothy Brakeman, the director of Pharma Deutschend, the largest association for pharmaceutical companies in Germany.

Such warnings seem to have teeth. Some companies have started plans to spend more in the United States; The company announced last week An American investment plan worth 50 billion dollarsThe latest in series From these ads.

In the comments published last week, the CEO of Novartis and Sannovi suggested that a lower organization was not enough to stop the bleeding. They argued that “controlling European prices and austerity measures reduces the attractiveness of its markets”, and that the bloc should pave the way for higher prices.

The executive officials in the industry also warned that the customs tariff for this sector can disrupt supply lines, weaken the patient’s arrival and inhibit research and development.

“There is a reason” that the customs tariff for medicines has been appointed to zero The last profit call. “Because definitions can create disturbances in the supply chain, which leads to a shortage.”

Ms. From Leyen emphasized similar concerns, warning Definitions on the pharmaceutical sector show the risks “the effects of the globally interconnected supply chains and the availability of medicines for European patients and the United States alike.”

Pharmaceutical tariffs also show another danger to the European Union.

The mass tries to build its ability to manufacture general medicines, which is medically necessary but is much profitable than brand products, and is often made in Asia.

But if the American customs tariff means that general medicine manufacturers in China and India suddenly search for agents outside America, it may send a flood of birth control pills cheaper than usual towards Europe.

This may make it more difficult for the European Union to create a local manufacturing base for the first stunning, even with the temptation of customs tariffs to produce medicines towards the United States.

“We think this is likely to increase investment in the United States,” said Deederic Stadig, a sectoral economist in Ing. “The European Commission should be on the ball.”