Trump’s bet on pharma: Tariffs and Transatlantic Relations

Donald Trump's announcement of a 100% tariff on imported brand-name drugs is clearly aimed at protecting the American industry. By forcing pharmaceutical giants to establish or expand production on American soil, Donald Trump is seeking to bring jobs back to the US, reduce dependence on foreign supply chains and strengthen domestic production capacity. At a time of growing global uncertainty, this industrial instinct is understandable: every Western nation wants to protect its critical sectors.

However, the scale of this measure raise a deeper question that goes beyond economics and touches on geopolitics. Can the United States and Europe, the two pillars of the Western alliance, more generally afford to let trade disputes of this magnitude jeopardise their partnership?

The United States and Europe are not just trading partners; they are at the heart of the Western project. Together, they embody the values of open markets, liberal democracy, and collective security. Their pharmaceutical sectors are not rivals in a zero-sum competition, but complementary drivers of global innovation.

From cancer research in Basel to biotechnology breakthroughs in Boston, transatlantic collaboration drives progress that benefits the entire free world.

Imposing tariffs that could double the cost of essential medicines risks not only driving up prices and causing potential shortages, but also creating unnecessary political tensions within the West itself. The EU has already signalled that these duties violate existing agreements and is considering its response. If the dispute escalates, adversaries in Moscow and Beijing will seize on Western disunity as proof that the transatlantic bond seems to be weakening.

Protecting American industry and jobs could be, in itself, a legitimate goal. But this should not come at the cost of weakening the very partnership that guarantees the prosperity and security of the West. The real challenge is to reconcile national industrial policy with Western collective strength. At a time when authoritarian rivals are going on the offensive, the transatlantic relationship must be protected, not affected.