Greek health economists warn that US tariffs, especially those proposed on pharmaceuticals at 25%, threaten both European patients and the pharmaceutical sector. President Trump’s tariff ambitions aim to reshore manufacturing but specific details are delayed until April. Amidst this uncertainty, exemptions for certain goods in Mexico and Canada were issued, complicating the situation further. Kostas Athanassakis, an expert in Health Economics, stresses the unique importance of pharmaceuticals, traditionally shielded from trade disputes due to their vital role in public welfare.
Professor Athanassios Vozikis from the University of Pireus highlights the fragile state of the international pharmaceutical supply chain, valued over $900 billion, and how unpredictable tariffs could have far-reaching implications for patients. He warns that tariffs on essential, inelastic demand products will likely increase costs for consumers and insurers alike. Innovative medications and competitive generics could see steep price rises, particularly in the immediate term.
The policy, designed to shift production to the US, poses twin threats to the EU. Firstly, it aims to siphon off value-added production from Europe, threatening living standards amid a shrinking workforce. Secondly, it contradicts EU pharmaceutical policies aimed at boosting R&D and local manufacturing. Vozikis notes potential catastrophic effects on Europe’s pharma revenue, particularly from the US market in 2024.
European biopharmaceutical firms tentatively navigate the potential fallout from tariffs, weighing options like relocating production to non-tariff countries or shifting operations back to the US. Athanassakis suggests negotiating to exclude pharmaceuticals from trade tensions, while also advocating for EU support on R&D. Regulatory and price competition aspects may need reevaluation to adapt.
Vozikis sees a silver lining through innovation via digital technologies and international collaboration. This crisis could be reshaped into a chance for Europe to build a sustainable, resilient pharmaceutical future. He asserts that this strategic pivot isn’t merely reactive but a proactive investment in health and security across the continent.
US tariffs threaten the European pharmaceutical industry, potentially raising costs for patients and insurers while undermining EU policies aimed at enhancing production and R&D. Experts recommend negotiating to protect pharmaceuticals and adapting regulatory measures while exploring innovative strategies for a sustainable future in health.
In conclusion, the proposed US tariffs pose significant risks to the European pharmaceutical sector and patient healthcare, threatening economic stability and welfare. Economists urge careful negotiation to shield pharmaceuticals from this trade war and advocate for strategic innovations that could transform challenges into opportunities for future resilience and growth in Europe’s healthcare landscape.
Original Source: www.euractiv.com
