Pharmaceutical
Association: Trump’s trade war came up
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The high tariffs threatened by Donald Trump have particularly serious consequences for the German pharmaceutical industry, shows a new analysis. Patients in this country could also feel a trade war.
A trade conflict with the United States under Donald Trump would particularly affect the German pharmaceutical industry – and would have consequences for health care in this country. The Association of Researching Pharmaceutical Manufacturers (VFA) warns in an analysis that is available to the German Press Agency.
Functioning international trade relationships are central to the high-export pharmaceutical industry, writes VFA chief host Claus Michelsen in it. “A trade conflict between the EU and the USA would have a significant impact on the industry, with serious consequences for the care in healthcare and employment in the company.”
US share in pharmaceutical exports higher than with cars
According to the study, the United States is the most important sales market for the German pharmaceutical industry. Medicines worth 26 billion euros and thus almost a quarter of industry exports went to the United States in 2023 – the highest proportion of machines and cars in comparison to the local industries. The export of vaccines to the USA is particularly important.
At the same time, Germany imported pharmaceuticals worth 12.5 billion euros (17 percent) from the USA. For drug production in Germany, around twelve percent of the preliminary products (around 1.4 billion euros) would also be obtained from the United States, such as raw materials and chemicals. The United States is also the most important source of supplier for the pharmaceutical industry, in front of the Netherlands and Switzerland (each eleven percent) and Ireland (ten percent).
Preliminary products from the USA important for drug production
“In an emergency of a trade war, preliminary products could be stronger or at times completely missing,” says Michelsen. “This would put drug production in Germany under pressure with consequences for medication supply and the employees in pharmaceutical production.”
Michelsen refers to difficulties during corona pandemic. At that time there was an export stop for lipids in the United States that are required for vaccines. The consequences were also noticeable in Germany.
US President Donald Trump has threatened to increase tariffs to imports from Europe to 10 to 20 percent and for imports to China to 60 percent. Economists fear trade conflicts with the USA and counter reactions from the EU, which in the end could cost many jobs in Germany.
“US protection tariffs would be poison for the industrial economy”
The German exports would be under pressure if Trump would make you serious and collect tariffs, writes the VFA. “New US protection tariffs would be poison for the industrial economy.” Since the financial crisis, the US share of German exports has increased, most recently to more than ten percent. The United States is mostly the most important sales market for domestic industries. A trade conflict in the pharmaceutical area would be particularly serious. “Europe’s goal must therefore be to avoid a trade conflict with the United States.”
dpa
Source: Stern