German pharmaceuticals: Trump tariffs would be 'severe setback'

The German pharmaceutical industry reacted sharply on Friday to US President Donald Trump's announced 100% tariffs on medicines, reported dpa.

"If the plans are implemented as announced from October 1, this would be a severe setback for Germany and Europe as pharmaceutical industry locations," the VFA industry association said.

It said the announcement was at odds with previous trade arrangements between the United States and the European Union, which provide for a tariff cap of 15%.

"The announced import tariffs of 100% would have severe effects on international supply chains, make the production of medicines more expensive and endanger the supply of patients in both the US and Europe," said VFA president Han Steutel.

The US is the most important export market for Germany's pharmaceutical industry, which employs around 130,000 people and includes global names such as Bayer and Merck. In 2024, goods worth €27 billion, or around 25% of German pharmaceutical exports, went to the US.

Trump says that companies investing in pharmaceutical production in the US would be excluded from the announced tariffs.

Steutel said it was important to find swift solutions for Europe and Germany, underscoring the importance of the European single market.

"In the US you can supply 300 million people at a stroke. In Europe it is 450 million people, but spread across 27 markets. We are not exploiting our potential as a single market and are thus becoming a pawn of the major economic areas," he said.