European pharmaceutical companies are raising concerns over potential U.S. tariffs that could accelerate a shift in investment and manufacturing toward North America. The European Federation of Pharmaceutical Industries and Associations (EFPIA), representing major firms such as Bayer, Novartis, and Novo Nordisk, has urged the European Commission to take immediate action to prevent the sector from relocating key operations abroad.
Although pharmaceuticals were initially exempt from the broader tariffs announced by U.S. President Donald Trump, new levies targeting the industry are expected soon. This uncertainty has led drugmakers to reconsider their long-term strategies, with many already expanding production facilities in the United States.
EFPIA argues that Europe’s current regulatory framework needs urgent reform to remain competitive against the U.S., China, and emerging markets. Industry leaders have called for stronger intellectual property protections, streamlined clinical trial procedures, and improved digitalization of the healthcare system. Furthermore, the trade association warns that U.S. tariffs could significantly disrupt global medicine supply chains, affecting availability and pricing across Europe.
In response, the European Commission has proposed 25% counter-tariffs on various U.S. goods, including agricultural products and consumer items. However, industry leaders stress that without meaningful reforms, Europe risks losing its competitive edge in pharmaceutical innovation and further incentivizing companies to relocate their operations abroad.