A European group representing drug companies warned that putting taxes on medicines would be very harmful. This came after U.S. President Donald Trump announced high import taxes on the pharmaceutical industry.
On Thursday, Trump said there would be new taxes on many industries. One of them was a 100% tax on any branded or patented medicine, unless the company is building a factory in the U.S.
In July, the European Union and the U.S. had made a trade deal. This deal limited taxes on medicines and other goods to 15%.
It’s not yet clear if Trump’s new plan changes the deal that was made in July.
Nathalie Moll, the head of the European Federation of Pharmaceutical Industries and Associations, said putting taxes on medicines would be the worst possible choice.
She explained that taxes raise costs, mess up supply chains, and stop patients from getting the medicines they need to survive.
Moll also said the EU and U.S. already have a trade deal in place.
She added that both sides should keep talking about how the EU can better support global research and development—without hurting patients in either the EU or the U.S.
