The recent announcement of a 20% tariff by U.S. President Donald Trump on goods imported from the European Union has raised concerns within the pharmaceutical industry, particularly from Bayer AG. The head of Pharmaceuticals at Bayer, Stefan Oelrich, emphasized the potential negative consequences of initiating a trade war on medicines in light of this development.

While U.S. pharmaceuticals were exempt from the tariffs, Oelrich warned against retaliatory measures, stating, "If we start a trade war on medicines, so if we reciprocate, I think it's the wrong way of doing it." Oelrich expressed that tariffs and trade interventions are historically excluded from the pharmaceutical discussion, suggesting that targeting this sector could be counterproductive.

During an event at Bayer’s Berlin offices, Oelrich expressed concerns regarding the European Commission’s proposed Critical Medicines Act, stating that it could hinder the industry’s competitiveness.

He argued that increasing government mandates without acknowledging the real financial constraints of pharmaceutical companies might lead to higher medicine costs and reduced access.

In discussing joint procurement approaches for health emergencies, Oelrich articulated a conditional support, suggesting such strategies should not be adopted purely for cost-cutting, as they could ultimately slow patient access to medications.

On the topic of pharmaceutical pricing and reimbursement, Oelrich proposed the establishment of a standardized European price for new medicines, allowing countries to negotiate their own rebates, in order to ensure immediate access across member states following European Medicines Agency approval.

With ongoing negotiations surrounding the pharmaceutical package under the Polish presidency of the Council of the EU, Oelrich noted a mixed reception toward regulatory data protection regulations, stressing that the evolving geopolitical landscape necessitates a more competitive EU pharmaceutical sector.

Reflecting on Bayer's investments over the past six years, Oelrich indicated a notable focus on the U.S., claiming that the majority of the company's significant acquisitions were American, highlighting a lack of an environment conducive to biotech growth within Europe.

In light of the new tariff measures, the agricultural sector in the EU voiced alarm, particularly among farmers and wine producers in Spain, as these tariffs could drastically reduce exports to the U.S. The European Commission has warned that Trump's tariffs might lead to a significant decline in EU exports, affecting numerous sectors amidst rising economic tensions.

This culminated in calls from various industry organizations for a coordinated response to mitigate the economic impact and seek resolutions to the trade disputes.