The potential for U.S. tariffs on healthcare imports under a future Donald Trump administration has reignited a debate in Europe over drug pricing. Pharmaceutical companies are arguing that they are not fairly compensated for treatments on the continent and are pushing for price increases.
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The industry points to Europe’s weaknesses compared to the U.S., particularly as Washington seeks to bring drug production back home. “The US now leads Europe on every investor metric,” noted the European Federation of Pharmaceutical Industries and Associations (EFPIA) on April 8, warning Brussels of a potential shift in pharmaceutical research, development, and manufacturing towards the U.S.
Around 30 pharmaceutical company executives, in a letter to European Commission President Ursula von der Leyen on April 11, even warned of a potential “exodus” if policies don’t change.
These arguments come despite the pharmaceutical industry’s strong profitability. The global market was estimated at nearly €1.3 trillion in 2023. Johnson & Johnson, a global leader, reported a net profit of $14 billion in 2024, while Sanofi in France reported an operating margin of 27.6%.
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