IPHA Statement on EU-US trade agreement
Thursday 21st August 2025
IPHA notes the joint statement by the US and EU on tariffs today (Thursday), particularly the aspects dealing with pharmaceuticals.
Some mitigation of the potentially bad outcomes is set out. However, there remains considerable uncertainty and problems with tariffs policy. A 15% tariff on innovative medicines exports would not be a solution for anything or any country; tariffs on medicines would be a substantial new cost where there was none before and a drag on investment, jobs and innovation.
A lower or zero tariff on generic products and their ingredients, leaving open higher tariffs on innovative medicines, is misguided and does not support investment in innovation and patients’ interests in either the US or the European Union. Moreover, the patent-status of products does not fit into existing trade product categories and will raise further complexities.
IPHA asks the Irish Government to continue to make the case for zero tariffs on innovative medicines with the US Administration, with Ireland as a key and strategically-reliable supply chain partner.
IPHA would reiterate:
- Tariffs on innovative medicines will disrupt global supply chains, undermine innovation, and ultimately harm patient access to life-enhancing medicines on both sides of the Atlantic.
- Ireland plays a crucial role in supporting manufacturing facilities in the United States by providing many of the essential components and critical segments of the production process needed to bring life-enhancing medical treatments to the people that need them.
- Tariffs are a blunt instrument that threaten jobs, investment, competitiveness, and supply chain resilience across the US and the EU. Instead, both industry and Government should continue to address the issues raised in the US Administration’s Section 232 investigation and, given the complexities of pharmaceutical supply chains and the risks to patient access, it is critical to establish a zero-tariff framework—with a grace period built in for any changes—to safeguard uninterrupted care when it is most needed.
- From a European perspective to secure future pharmaceutical investment and ensure fair, sustainable access to innovative medicines, we need policy solutions that values innovation and creates an operating environment that can accelerate turning Europe’s great science into new treatments.
- In parallel, Ireland can also urgently address its access to medicines environment to ensure we remain competitive on all fronts. The upcoming IPHA Framework Agreement on Pricing and Supply of medicines, due for renewal at the end of September, is a key opportunity to improve timely patient access to new medicines while maintaining a competitive, innovation-friendly environment.
With the right policy changes and serious commitments to invest in a world class pharmaceutical ecosystem in Europe and Ireland, we can continue to be a global hub for new medicines serving the needs of millions of patients.
The Irish Pharmaceutical Healthcare Association (IPHA) represents 41 providers of innovative medicines in Ireland, with many companies having significant manufacturing and business presence in the country.
