EU deal could mean 15% tariff on pharmaceuticals

EU deal could mean 15% tariff on pharmaceuticals

Last week’s agreement between European Union leadership and President Trump means tariffs on EU pharmaceutical imports could be around 15%.

Why it matters: EU countries provide 43% of the active ingredients in U.S. drugs and 60% of all U.S. pharmaceutical imports. The currently envisioned tariff could cost the U.S. pharma industry $13-$19 billion, though analysts say it could have been worse, Reuters reported.

Details, details: Although EU tariffs took effect Aug. 1, many details need to be finalized, including tariffs on specific product categories.

For now, pharmaceuticals are exempt, while a Commerce Department Section 232 investigation considers the national security implications of tariffs on drugs. The investigation is expected to be completed in August. BIO submitted comments for the investigation, saying that tariffs would threaten America’s security, economy, and biotech leadership.

What’s next: If, following the investigation, President Trump decides that pharmaceutical tariffs are warranted, tariffs on EU pharma imports could not be higher than 15%, European Commission President Ursula von der Leyen said. A White House fact sheet also mentions that figure. However, the actual percentage the White House chooses to set will be determined after the 232 investigation. 

What BIO’s doing: BIO is analyzing the agreement and continuing discussions and advocacy with the Trump Administration and Congress as details are being worked out.

Why the SBIR/STTR programs matter

Federal seed funding provides biotech startups with much more than just money, explained program officials and biotech startups at the BIO International Convention in Boston.

Why it matters: U.S. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) seed funding helps biotech innovations get to market. BIO is working hard to ensure that the program is reauthorized before it expires Sept. 30. Legislation announced on May 1 would make SBIR/STTR permanent.

The impact: “A decade ago, there was a survey by the NIH that showed more than 10% of all the SBIR-funded winners were able to successfully get to over $1 million in revenue,” said Rupak Doshi, CEO of OmniSync, at the BIO International Convention.

In addition to funding, SBIR and STTR recipients can benefit from SBIR Partnering, which offers advice and networking support. SafeBVM CEO Prathamesh Prabhudesai, M.D. found a university hospital partner through the SBIR Partnering database and SBIR officials, and NuvOx Pharma’s Evan Unger, M.D., said the program supported his attendance at a conference where he was able to obtain funding.

SBIR is a positive signal for investors, Prabhudesai said. “Once you have an SBIR grant, it does give you some level of credibility that the science is sound because it’s gone through a lot of peer-reviewed research and analysis,” he said.

Read more on Bio.News.

What Else to Read

Susan Monarez confirmed as director of the Centers for Disease Control and Prevention (CDC). Confirmed July 29, Dr. Monarez, who had been acting director, was the first director to have to receive Senate approval under a 2023 law. She has a doctorate in microbiology and immunology from the University of Wisconsin and has held several government positions in health technology and biosecurity. 

Delaware Bio celebrates first group of graduates from the BioConnect DE biomanufacturing training program. The 24 graduates, honored in a July 28 ceremony, completed an intensive eight-week, tuition-free training to prepare for entry-level roles in Delaware’s growing life sciences sector. These are biomanufacturing positions that typically do not require a college degree. Funded through a Congressionally Directed Spending grant, with financial and other support from Delaware Bio and industry partners, the pilot is part of BioConnect DE’s work to expand the state’s bioscience workforce. “Today’s exciting celebration is the result of years of planning,” said Michael Fleming, President and CEO of Delaware Bio. “But most importantly, it recognizes a remarkable group of individuals.” 

BIO experts discuss challenges and opportunities for developing redosable gene therapies. Members of BIO’s Cell and Gene Therapy Nonclinical Task Force collaborated on a research paper on the challenge of immune responses hindering redosing of gene therapies. The manuscript outlines nonclinical study design considerations to help facilitate productive conversations with regulators to address the emerging opportunity for redosing gene therapies. Read more on Bio.News.

Beltway Report

On July 31, the Senate Appropriations Committee rejected National Institutes of Health (NIH) cuts in a bipartisan 26-3 vote. The 2026 spending bill would increase the NIH budget by $400 million, instead of slashing it by 40% as the White House proposed. The bill includes increases of $100 million for Alzheimer’s research, $150 million for cancer research, and $30 million for the Office of Research on Women’s Health. The Committee also rejected a plan to consolidate the Centers for Disease Control and Prevention (CDC) and cut its budget by 50%. The bill now faces a full Senate vote; the House Appropriations Committee has yet to mark up its bill on NIH funding. Read more in The Hill.

This week, the House is in recess. The Senate could go into an extended recess to clear a backlog of nominations by allowing President Trump to make recess appointments, The Hill reports.