Dutch pharmaceutical companies express concern about Trump's plans for import tariffs

The pharmaceutical sector in the Netherlands is very concerned about the threat of American import tariffs. Many medicines that are then sent to the United States are made in the Netherlands. Companies like Janssen, Organon, and MSD have large branches in the Netherlands, and the sector also provides jobs to tens of thousands of people.

“We as a sector are seriously concerned about the proposed tariffs of President Donald Trump,” The Vereniging Innovatieve Geneesmiddelen (VIG), which is the association for innovative medicines, said. “The pharmaceutical sector has been mentioned by him several times.”

Trump recently announced import tariffs against the European Union. Press agency Bloomberg reported that Trump even asked large pharmaceutical companies to move their production to the U.S., Otherwise they would be met with tariffs. The VIG emphasized that existing factories cannot simply be moved.

Economists of the Rabobank noted that the pharmaceutical sector has the strongest connection with the U.S. out of all the sectors, which makes it most vulnerable to import tariffs.

Vaccinations are made in the Netherlands, amongst other things. The country is also important when it comes to consumables and all kinds of equipment.

The VIG pointed out that it is unclear if or when Trump will implement the tariffs and what they will entail. “We are therefore currently inquiring with our supporters to better map the impact for the Netherlands."

The Netherlands has a significant role in the European pharmaceutical sector. Many medicines from the U.S. and other countries are also sent to the Netherlands. These medicines are often packaged in the country and exported.

According to the most recent numbers, the Netherlands imported almost 42 billion euros worth of patent medicines last year. The export of medicines was worth 52 billion euros.

The concerns about Trump’s policies are in addition to already existing concerns about the possibility of new rules in Europe for pharmaceutical companies. “The Netherlands and Europe are becoming less attractive due to the proposals of the European Commission. This is especially true for new factories for cell and gene therapy, where the Netherlands is still the leader in Europe. Trump's measures could then further increase the burden, making investments in the United States and Asia more interesting,” said the VIG.

Dutch business association VNO-NCW has also shared its concerns about the import tariffs. The organization said that it felt like Trump “made a new step in a threatening trade conflict.”

The VNO-NCW has said that they are in close contact with the government to develop scenarios and possible consequences.