The US administration concluded its investigation into the pharmaceutical sector, announcing 15% tariffs on innovative medicines imported from the EU on Thursday.
Since April 1 2025, the US commerce secretary has examined the impact of pharmaceutical imports on national security. US President Donald Trump said the resulting Section 232 report found that 53% of patented medicines sold domestically are manufactured abroad, concluding that current import levels “threaten to impair the national security and economy.
”Following through on a threat made last year, Trump ordered tariffs of up to 100% on patented drugs produced overseas, unless countries strike bilateral trade deals to secure lower rates or companies commit to building manufacturing capacity in the US.The EU will be exempt from these higher duties and instead faces a 15% tariff, in line with the so-called Turnberry deal negotiated with Brussels but not yet implemented.
Industry groups had lobbied heavily against steeper measures. Earlier on Thursday, as speculation over higher tariffs mounted, the European Federation of Pharmaceutical Industries and Associations (EFPIA) said the EU should move quickly to implement the EU-US joint statement, capping tariffs at 15% – “the best of a bad situation.”
Manufacturers of generic and biosimilar medicines, along with their associated ingredients, will be exempt. Sixteen large pharmaceutical groups that have already struck individual arrangements with Washington will also remain exempt until January 20, 2029.
According to Stat News, the Trump administration is now negotiating separate drug pricing agreements with smaller companies, a move widely anticipated by the sector.
“Our companies are already working on it intensively,” Alexander Natz, secretary general of the European Confederation of Pharmaceutical Entrepreneurs (EUCOPE), which represents about 2,600 small and mid-sized biopharmaceutical groups, told Euractiv. He noted that medicines have historically not been subject to tariffs: “These are not ordinary consumer goods.”
Switzerland, Liechtenstein, Japan and South Korea have also agreed to 15% tariff arrangements. The UK remains at zero under a trade agreement concluded last year, which included a commitment to pay higher prices for medicines.
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Source:
www.euractiv.com