In recent weeks, there has been considerable speculation surrounding the impact of Donald Trump’s significant tariff policy shift on the pharmaceutical sector. It was somewhat surprising to discover that drug products were notably absent from the 20% tariffs set to apply to exports from the EU to the US.
Tánaiste Simon Harris has indicated that the White House may soon introduce measures specifically targeting pharmaceutical products, potentially in the coming weeks. “We are keeping a close eye on these developments,” Harris mentioned, highlighting the growing concerns within the industry.
Interestingly, there have been whispers suggesting that major pharmaceutical companies might have influenced Trump, cautioning him about the negative repercussions of imposing tariffs on drug manufacturers. Renowned for his direct style, Trump himself addressed the media last night, hinting at forthcoming measures on pharmaceuticals. He stated, “We are looking at pharma… as a separate category and we will be announcing that in the near future, not too distant future.”
It is worth noting that other commodities, such as steel and aluminum, were also exempt from the tariffs due to prior tax impositions. Trump has consistently expressed his desire to see drug manufacturing return to the US from nations like Ireland. There is a widely held belief that Ireland has captured a significant share of the US pharmaceutical market over the past few decades; however, the data reveals a stark contrast, with 1,500 pharmaceutical factories in the US compared to just 90 in Ireland.
As the situation unfolds, it is conceivable that Trump may opt for non-tariff barriers, such as technical regulations that might inflate the costs of importing drugs. This could serve to deter pharmaceutical companies from expanding their operations overseas. Currently, the specifics regarding potential tariffs or regulations affecting drug companies exporting to the US remain unclear.
To put it into perspective, Irish pharmaceutical exports to the US are valued at a staggering €44 billion, constituting a substantial portion of Ireland’s overall exports to the US. Therefore, the decisions made by the White House will undoubtedly yield significant implications for Ireland.
For further insights:
- Ministers to discuss US tariffs with employers and union leaders
- Trump tariffs provoke global condemnation
- ‘Pharma tariffs could be introduced within weeks’ – Tanaiste
Edited By Ali Musa
Axadle Times International – Monitoring.
