STAT+: Pharmalittle: We’re reading about Trump and tariffs, pharma warning of an EU exodus, and more
President Trump said his administration will soon impose tariffs on pharmaceuticals coming from foreign countries
Hello, everyone, and welcome to the middle of the week. Congratulations on making it this far. It is an accomplishment, after all. The next step is to forge ahead. And why not? Just consider the alternatives. On that optimistic note, please join us for a needed cup or three of stimulation. Our choice today is blueberry cobbler. Please feel free to join us. Meanwhile, here are some items of interest to get you going. Have a wonderful day and do drop us a line when something tangible occurs or to simply provide feedback. We are always open to tips, suggestions, and criticism. …
President Trump said that his administration will soon impose tariffs on pharmaceuticals coming from foreign countries, predicting drug companies will move their operations to the U.S., USA Today writes. “We’re going to be announcing very shortly a major tariff on pharmaceuticals . . . when they hear that they will leave China, they will leave other places because . . . most of their product is sold here,” he said during a National Republican Congressional Committee dinner. Trump exempted pharmaceuticals from the round of reciprocal tariffs he announced last week, but has been suggesting for months that the drug industry will be targeted. In one exchange with reporters in February, Trump said tariffs on imported drugs would likely start around 25% and could climb higher. A tariff on drug imports will increase consumer prices, analysts and academics have warned. Pharma stocks dropped in response, Reuters adds.
Without “rapid, radical policy change,” a massive chunk of the almost $182 billion capital investment and R&D expenditures currently planned for the 27 European Union member states in the next five years will be at risk of being diverted to the U.S., Pharmaphorum writes, citing a survey of 18 companies by the European Federation of Pharmaceutical Industries and Associations. That includes 85% of around $56 billion in capital projects and up to 50% of R&D spending, or approximately $58 billion. The poll also suggested that this is no long-term risk — respondents said that a total of $18 billion, or 10% of the total investment plans, is at risk within the next three months as tariffs levied by the Trump administration — which kicked in fully this morning, including a ramped-up 104% rate on China — start to have an impact.
