BERLIN

US President Donald Trump’s decision to impose 100% tariffs on branded or patented pharmaceutical products manufactured abroad risks delivering a “heavy blow” to German pharmaceutical companies, according to the Berlin-based pharma trade group Verband Forschender Arzneimittelhersteller (vfa).

The decision contradicts previous agreements between the US and EU, which had capped tariffs at 15%, the vfa said Friday.

The implementation of 100% customs tariffs could leave a “serious impact on international supply chains” while increasing the price of production and endangering patient care, both in the US and in Europe, the statement read.

Han Steutel, president of vfa, said investments are “already being frozen,” noting that “this is the last thing Germany needs right now.”

Steutel stated that this decision calls into question the existing trade agreements, emphasizing that finding quick and robust solutions to help European firms is key for both Europe and Germany in this climate.

He emphasized that “a sovereign, strong Europe” would be the counterweight to the growing economic power the US holds, saying that while the EU market is as big as 450 million people, it is spread over 27 countries, while the US “can take care of 300 million people in one fell swoop.”

Steutel added that the EU market is not utilizing its strength as a single market and said it has become “a pawn” in global economic power plays.

The US remains the most significant export market for the German pharmaceutical industry, supporting approximately 130,000 jobs.

Last year, German pharmaceutical exports to the US totaled €27 billion ($31.5 billion).

- Pharmaceuticals: New frontier in tariff war

Trump announced the new tariffs in a post on the US-based Truth Social platform on Thursday.

He said pharmaceuticals manufactured outside the US will face the exorbitant rate of 100% customs tariffs.

Any branded or patented pharmaceutical product will face the tariff if the manufacturing company has not already broken ground to begin establishing a US production plant.

Trump’s decision came after the US Commerce Department launched a national security probe into imported drugs in April.

Since then, the Trump administration has been signaling that it will impose tariffs on drugs in a bid to bring the production back to the US to support its national security, strengthen supply chains, and promote economic growth through employment.

The aim is to reduce foreign dependence on drugs -- especially during global crises -- by making domestic alternatives more attractive via raising the cost of imported drugs.