Trump tariffs can violate WTO rules but pharmaceutical to prepare for preparation

Europe’s pharmaceutical firms seek to prepare for potential cases of import duties in the US, some form “tariff tasks”, even if analysts warn that it is charged in the sector.

Fresenius Medical Care He says he has established his first “tariff worker” to manage uncertainty related to US President Donald Trump’s proposed trading accusations, and certain production is likely to be directly affected.

“Clearly, we look at what’s going on with tariffs in Europe, and what is also happening with tariffs (ON) medical equipment,” Crawk Box European said last week, “CEP Giza said.

“The escalation and the speed of this with executive orders are what we have collected quite quickly,” Giza said about the working group.

President Trump on Wednesday gave a sign that the European Union may be near the face sweeping 25% tariffs For its export to the US, a reflection of similar threats against Canada and Mexico. It happened a week after Trump said he was considering a flat fee of about 25% for all pharmaceutical, car and chip.

The proposal has caused concern about some analysts who say that such responsibilities in the field of pharmaceuticals will note the violation of the rules provided for by the World Trade Organization – which the US believes.

According to the 1994 pharmaceutical agreement, most of the pharmaceutical products and substances used to make them are exempted from tariffs, linking them to certainly. However, Dierik Stadig, the Ing sectarian economist, said the provision may not be enough to prevent the Plans of the White House leader.

“I do not think that WTO violations will be enough to push the exemption from mutual tariffs,” the CNBC stadium said on Monday, transferring tariff tasks “prudent business step”.

“It seems Trump’s administration does not really care (if it violates WTO rules),” said Pharma Equity on Sydbank on Friday.

The White House press secretary did not immediately respond to a CNBC request for a comment on the possibility of violation of trade. The WTO Secretariat’s press secretariat stated that “it does not comment on the specific actions of our members, whether it is proposed or actual,” but added that the participants could raise concern about the actions of other members or to start a dispute settlement procedure.

Uncertainty compared to Trump’s proposals – and their expediency – serves as a major headache for European firms.

European pharmaceutical companies will be one of the most severe suffering that the tariffs in the sector. In 2024, the United States consumed pharmaceutical products worth about $ 560 billion, more than a third of which were imported, primarily from Ireland, Germany and Switzerland, the calculations reported.

“These are countries that will suffer greatly if the threat becomes a reality,” the stadium wrote note Last month.

Medical assistance in Germany Fresnia said the tariffs most likely came to the supply of dialysis and consumables in the US, even if some of the US production facilities remain isolated.

Alcon CEO David Endycot said that the Swiss-American pharmaceutical and medical campaign “pays very close attention” to the collection. Despite the limited exposition at the immediate level of import-exports, Endicott pointed to potential problems around the firm’s supply networks, including import of raw materials.

“We do not see a big exposition here, but it’s a dynamic time,” he said on Wednesday CNBC.

Brian McNamara, CEO of the British multinational health campaign HaylonMeanwhile, on Thursday, although most of the sales in the US stems from domestic production, business “worked on what could be” tariff for one of its plants in Canada and in Europe.

One of the stated Trump tariff tariffs is to increase US home production by encouraging firms to find their production. On Monday, the CEO of Pfizer suggested that the US drug manufacturer could move some of its foreign production to its US factories to mitigate higher costs.

“If something happens, we will try to mitigate it by transferring from production sites outside to production sites here,” said Albert Burla Annual TD Cowen Health Conference.

However, economists questioned the logic of such a strategy and the ability of firms to increase the potential in the desired president.

“It will take time to create production plants and use production facilities,” the stage said. “Secondly, savings scale for the production of Generic API (active pharmaceutical ingredients) in India and China is so important that even at 25% of the tariff production of total API is not necessarily cheaper in the United States, it will be difficult to scream raw materials quickly.”

Meanwhile, others warn that additional levies will only serve to connect prices in the already expensive American health sector.

“Many companies have a global supply chain, so it will hurt either companies or patients or other members of a rather complex US health system,” Lontoft Sydbank said.