Pharmaceutical Industry Warns Against U.S.-EU Tariffs on Medical Goods

The pharmaceutical industry is urging the U.S. government and European Union (EU) officials to exclude medical goods from expanding tariff disputes, warning that such measures could lead to significant price increases on life-saving drugs.

Major drugmakers, including Novo Nordisk and Merck, have expressed concerns that tariffs on medicines produced in Europe could disrupt supply chains and impact patient access to essential treatments. Notably, Novo Nordisk’s obesity drug Wegovy and Merck’s cancer treatment Keytruda, both manufactured in Europe, could see price spikes if tariffs are imposed.

Industry leaders argue that higher costs on pharmaceuticals would not only burden patients but also strain healthcare programs like Medicare and Medicaid in the U.S. This comes amid ongoing trade tensions between the U.S. and the EU, with both sides considering retaliatory tariffs on key industries.

Pharmaceutical companies have also highlighted the risk of supply shortages, as many drugs rely on raw materials and manufacturing processes spread across multiple countries. In response, some firms have pledged to expand manufacturing in the U.S. if given favorable incentives. Eli Lilly, for example, recently announced a $27 billion investment in new production facilities across the country.

As trade negotiations continue, industry experts stress the need for policymakers to protect the global supply of medicines and prevent disruptions that could jeopardize public health.