EFPIA acknowledges the U.S.-EU Joint Framework Agreement published today by the European Commission and the U.S. Administration.  

The proposal breaks a 30-year commitment between Governments to protect patients by eliminating tariffs on innovative medicines and their components. 

Nathalie Moll, Director General, EFPIA, said: “We understand the environment that European policy makers are operating in, and recognise the efforts to secure a trade deal for the region that works for all. With a potential 15% U.S. tariff on pharmaceuticals, no clear path for exemptions for innovative medicines and no visibility on future trade and pricing policies, we remain concerned for the future of patients and our sector in Europe.” 

EFPIA and its members are united in their view that placing tariffs on medicines will harm patient care and the industry on both sides of the Atlantic. They have the potential to create shortages, impact access for patients, and build barriers to global R&D.  

Nathalie Moll said: “Adding barriers to highly functioning and complex supply chains is not a route to national resilience, increased manufacturing or better patient care. They impact our ability to collaborate on discovering new treatments to tackle global health challenges, with billions of Euros diverted away from medical research. As discussions on exemptions continue, we urge the EU and Member States to secure exemptions for innovative medicines to protect patients and ensure the EU pharmaceutical industry is competitive. 

We need real solutions to level up pharmaceutical investment in research, development and manufacturing, rebalance trade and ensure a fairer distribution of how global pharmaceutical innovation is financed and valued.  

We urgently seek a Strategic Sector Dialogue with the Commission and Member States to secure the future of the industry in Europe. We believe that with the right support, companies can continue to invest here and ensure that the health and economic security that medical innovation brings, stays in Europe.”  

Ends 

   Notes to editors 

• The estimated cost of 15% tariffs on pharmaceutical exports to the US equates to approximately Euros 18 billion.
  
• In the short term, pharmaceutical companies in Europe are tied into long term pricing deals with national health systems and may be forced to absorb these unsustainable costs.  
• In the longer term, those costs will directly impact R&D investments and industry’s ability to innovate.
• In 2024, the EU pharmaceutical sector exported Euros 120 billon to the US; this compares with Euros 38.9 billion for cars.