Health economists in Greece have raised concerns that proposed tariffs by the United States could have detrimental effects on European patients and the pharmaceutical industry.

US President Donald Trump has suggested imposing tariffs of at least 25% on pharmaceuticals, as part of a broader initiative aimed at reshoring manufacturing and decreasing reliance on foreign suppliers.

However, specific measures regarding these tariffs are not expected to be revealed until April.

This week, the situation further complicated as more goods were added to the list of exemptions from the tariffs imposed on Canada and Mexico, raising questions about the administration's approach.

While tariffs on sectors such as automobiles and semiconductors are anticipated, the potential inclusion of pharmaceuticals raises eyebrows.

Kostas Athanassakis, an assistant professor of Health Economics at the University of West Attica, highlighted that pharmaceuticals are considered "merit goods" and have historically been excluded from trade disputes due to their importance to public welfare.

Professor Athanassios Vozikis from the Laboratory of Health Economics and Management at the University of Piraeus noted that the pharmaceutical sector is bracing for potentially substantial disruptions in the face of new tariffs on imported goods announced by the US administration.

He indicated that the international pharmaceutical supply chain, valued at over $900 billion, could face significant risks.

Vozikis stated that the unpredictability of Trump’s tariff policies poses an immediate threat, causing anxiety among patients across the globe.

He explained that tariffs on products with inelastic demand would likely impact consumers directly, especially for innovative medications and low-margin products like generics and biosimilars, resulting in increased costs for consumers and healthcare payers in the short term.

Athanassakis identified the dual threat presented by such tariff policies as counterproductive, potentially draining valuable production from Europe while contradicting EU objectives to promote research and local pharmaceutical production.

He emphasized that the imposition of tariffs could have far-reaching consequences for Europe’s pharmaceutical industry, as a substantial portion of their revenue derives from the US market.

The response of European biopharmaceutical firms remains uncertain, with potential outcomes including a shift of drug production and clinical research back to the US or relocation to other countries without tariffs.

Economists suggest that apart from negotiating with the US to exclude pharmaceuticals from tariff considerations, the EU may need to revise incentives for research and development and local manufacturing.

Vozikis mentioned that through the strategic use of digital technologies and enhanced international collaboration, the European pharmaceutical sector might have the opportunity to transform this situation into a chance for establishing a more resilient future.

The potential for innovation through diversification of production methods and improved cooperation with global partners could play a key role in navigating the challenges posed by the tariffs.