US President Donald Trump says he will soon announce “major” prices on imported pharmaceutical products, a decision that could end decades of global trade in medication.
For years, most countries, including the United States, have imposed a few prices or no prices on the medicines completed, thanks in part to a 1995 World Trade Organization (WTO) agreement to maintain affordable drugs.
This change comes after Trump introduced a coverage rate of 10% on other imports last week, as part of a wider effort to bring manufacturing to the United States.
Its new “reciprocal” prices – including a 104% duty on goods arriving from China – entered into force on Wednesday, intensifying a world trade war and other shaking markets.
Pharmaceutical buyers, so far spared these measures, are now preparing for what could come.
The United States has generally imported large quantities of finished drugs from India, Europe and China without buyers paying prices – although active pharmaceutical ingredients (API), used to manufacture drugs, face certain functions.
Speaking during a fundraising dinner for his republican party on Tuesday, Trump said: “We will quickly announce a major price on pharmaceutical products. And when they hear this, they will leave China.”
He also told journalists in his Air Force One plane last week that “pharmaceutical” prices would arrive “at a level that you have not really seen before”, saying that they would be announced “in the near future”.
In 2024, the United States imported $ 213 billion (168 billion pounds sterling) of drugs – more than twice and a half times a decade earlier.
Although they lack detail, his comments have shaken buyers, especially those that count on Indian imports. India provides almost half of all American generics, or cheaper versions of popular drugs, saving billions of countries in health costs.
Indian pharmaceutical actions have dropped sharply to the news. India sends approximately a third of its annual pharmaceutical exports of $ 13 billion to the United States, which is a key market.
At present, Americans pay little or no tax on imports of Indian drugs – compared to the obligation of almost 11% paid by the important Indians of American drugs.
Indian drug manufacturers warn that prices would force them to increase prices, which could ultimately raise American medical bills. While companies like Cipla and Dr. Reddy have American plants, most say that moving production is not viable for generic low -margin drugs.
European drug manufacturers are also alert. After a high-level meeting between the president of the European Commission, Ursula von der Leyen and the best pharmaceutical companies on Tuesday, the European Federation of Pharmaceutical Industries and Associations (EFPIA) warned that prices could remove the production of Europe and the United States.
The EFPIA, whose members include large pharmaceutical companies such as Bayer, Novartis and Novo Nordisk – The manufacturer of the Type 2 Star Diabetes drug manufacturer – expressed his concerns that the increase in prices could disrupt the role of Europe as a key director in global pharmaceutical production.
In 2024, pharmaceutical products were the largest EU export to the United States, worth $ 127 billion (100 billion pounds sterling).
Large companies have urged the EU to act quickly, looking for political changes to improve Europe’s competitiveness and prevent a “massive exodus” in the United States. They also expressed concerns about the potential prices for EU reprisals, which could disrupt supply chains and affect patients on both sides of the Atlantic.
The global pharmaceutical giants like GSK and Pfizer operate in several countries, including Ireland and Germany, which means that new prices could disrupt several parts of the supply chain.
