Some pharmaceuticals are taking the unusual measure of sending more air medications to the United States, two executives and two logistics companies said, amid fears that the announcement of tariffs on April 2 of President Donald Trump can include products made in Europe.
Two pharmaceutical companies based in Europe told Reuters this week that they have been sending as much as possible of their medications through the Atlantic during the last weeks and heard that other pharmaceutical companies were doing the same.
One of the executives said that his company was “planning scenarios” for possible tariffs and the sending of more air medications using global cargo and transport companies, including United Parcel Service Inc and the German DHL
That executive refused to give more specific details.
A source of a third international pharmaceutical company said they were quickly moving the stock available from abroad in an effort to get ahead of tariffs, but did not specify the shipping method.
DHL claimed to have observed an increase in air exports by air from Europe, but did not explain the reason for the increase. UPS declined to comment. Fedex did not directly address the issue.
Pharmaceutical products have been out of commercial wars for a long time due to their potential damage.
Lee: EU announces the cut of 10,000 jobs in your health department
But Trump’s decision to increase tariffs on products from China, including finished medications and raw ingredients, as well as a first round of tariffs between the United States and the European Union on products such as steel and bourbon, has generated expectations that medications are added to the list.
The United States depends on medicines produced in part in Europe and generate hundreds of billions of dollars in revenue.
The concern for possible tariffs to pharmacists began before Trump assumed office in January, after threatening universal import tariffs during his campaign. Since then, he has repeatedly threatened with a 25% tariff to pharmaceutical imports and the products from the EU.
Kuehne and Nagel said they have seen “a couple” large pharmaceutical shipments to the US, even by air, but that it was too early to say if it was related to tariffs.
Sending merchandise by plane is faster than by sea, but considerably more expensive. Companies often use air transport for medications and vaccines against rare diseases, whose useful life is shorter.
The volume recently transported in airplanes was above average, the sources said.
The second executive of a pharmaceutical company said that his company was “accumulating” in the United States, the largest market in the pharmaceutical industry, with an approximate value of 630,000 million dollars, a measure aimed at relieving the immediate impact of tariffs if they are implemented.
The sources spoke on anonymity to be able to openly discuss their company’s contingency planning against possible tariffs.
In recent months, automobile manufacturers such as General Motors and Mercedes, French manufacturers of Coñac and Italian producers of Parmesan cheese and foamy wine have also accelerated deliveries to the United States.
Lee: Trump’s automotive tariffs point to a pillar of Asian economies and national pride
Under pressure
Several investors and analysts who follow the European health sector claim that uncertainty about tariffs is harming the shares of companies such as the Danish manufacturer of obesity drugs Novo Nordisk and Anglo-Sueca Astrazeneca
The European health subscript fell 0.7% on Thursday, its lowest level since January 20.
The exports of drugs and pharmaceutical products from the United States totaled about 90,000 million euros (97,050 million dollars) in 2023, according to Eurostat.
This included active ingredients for popular medicines such as Botox manufactured by ABBVI
Ireland – one of the main medicine exporters to the United States – experienced an increase in drug exports there in January, as shown by the latest data from the Central Statistics Office of the country.
The data showed that Irish exports of medicinal and pharmaceutical products exceeded 9.4 billion euros, almost triple the December figure of 3,200 million euros and more than double the almost 4,100 million euros of medications sent in January 2024.
Lee: Trump turbulence stops large pharmaceutical and biotechnological agreements: bankers
Prashant Yadav, an expert in the medication supply chain and senior member of the Foreign Affairs Council, said the pharmaceutical exports of France, Germany, Italy, Spain and Great Britain to the United States have also increased this year.
Companies and wholesalers usually have between 3 and 6 months of stocks if medications have a prolonged useful life, said Yadav.
With Reuters information
Follow us on Google News to always keep you informed
