Washington, United States (Enmaeya News) — A new U.S.-European Union trade framework will impose a 15% tariff on European pharmaceutical imports, an industry-friendly outcome compared with earlier proposals that suggested tariffs of up to 250%. The agreement takes effect September 1.

Analysts say the tariff is “less bad than expected,” noting that strong U.S. production could help offset some costs. Still, estimates suggest the tariff could cost the pharmaceutical industry $13 billion to $19 billion a year, mainly affecting branded medicines, while some generic drugs may be exempt.

Experts warn that even a moderate increase could raise costs across the supply chain, complicate pricing, slow new drug launches, and affect insurer negotiations.

Questions remain about which products will be subject to the tariff, including active ingredients, biologics, combination products, and novel therapies. This uncertainty could slow customs implementation and disrupt supply chains.

For decades, medicines have mostly been exempt from tariffs because of public health concerns. The new deal signals a change, tying the pharmaceutical sector more closely to geopolitical negotiations. Patients could face higher prices, delayed drug launches, or reduced access if companies pass costs along.

In response, some drugmakers are boosting U.S. manufacturing and R&D to reduce tariff exposure. While the 15% limit offers some certainty, companies now must manage classification questions, reassess cross-border operations, and balance costs with patient access and innovation.