Europe’s pharma trade with the US remains critical despite tariff turmoil

US authorities policies of Most Favored Nation (MFN) and tariffs endanger to disrupt Europe’s pharmaceutical trade, but portion European countries research alternate markets successful Asia, it whitethorn beryllium hard for them to substitute the innovation and nett imaginable offered by the US, accidental experts.

Initially excluded from the “Liberation Day” tariffs, US pharma imports were concisely threatened with 250% duties earlier the EU secured a woody astatine 15%. However, past month, aft the US Supreme Court overturned the archetypal planetary tariffs, US President Donald Trump responded with broad 10% tariffs nether impermanent measures, earlier raising these to 15%.

Since 2025, European leaders person made respective overtures to Asian countries, including a historical escaped commercialized statement betwixt the EU and India, which has a ample generics industry, and diplomatic trips to China, which has an emerging innovator cause find engine.

However, experts accidental that Asian markets are improbable to supplant the progressively unpredictable US market, and that European countries volition request to accommodate to the caller scenery fixed the innovative spot and commercialized extent of the US.

After the US authorities introduced the MFN argumentation done an enforcement bid successful 2025, respective pharma companies, similar Pfizer, struck deals that allowed their caller medicines to beryllium taxable to MFN prices successful Medicaid.

Speaking astatine the 2026 J.P. Morgan Healthcare Conference, Pfizer CEO Albert Bourla suggested the MFN argumentation could mean companies would rise overseas prices successful enactment with those successful the US, telling Reuters, “Shall we trim the US terms to France’s level oregon halt supplying France? We [will] halt supplying France.”

The US has a starring 40% stock of drugs successful improvement globally, according to a GlobalData report. However, successful 2nd spot is an progressively competitory China with an astir 20% share, leaving the 5 large European markets (5EU: France, Germany, Italy, Spain, and the UK) with 11%. GlobalData is the genitor institution of Pharmaceutical Technology.

In December 2025, French President Emmanuel Macron met Chinese Premier Xi Jinping and some countries issued a connection committing to foster “a free, open, transparent, inclusive and non-discriminatory situation for commercialized and investment”.

UK Prime Minister Keir Starmer visited the state successful January 2026, during which AstraZeneca announced a $15bn concern successful Chinese manufacturing. German Chancellor Friederich Merz arrived connected 25 February, aft figures released by the country’s Federal Statistical Office connected 20 February showed China had overtaken the US arsenic Germany’s superior commercialized partner.