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experts.Initially excluded from the “Liberation Day” tariffs, US pharma imports were briefly threatened with 250% duties before the EU secured a deal at 15%. However, last month, after the US Supreme Court overturned the initial global tariffs, US President Donald Trump responded with blanket 10% tariffs under temporary measures, before raising these to 15%.Since 2025, European leaders have made several overtures to Asian countries, including a historic free trade agreement between the EU and India, which has a large generics industry, and diplomatic trips to China, which has an emerging innovator drug discovery engine.However, experts say that Asian markets are unlikely to supplant the increasingly unpredictable US market, and that European countries will need to adapt to the new landscape given the innovative strength and commercial depth of the US.After the US government introduced the MFN policy through an executive order in 2025, several pharma companies, like Pfizer, struck deals that allowed their new medicines to be subject to MFN prices in Medicaid.Speaking at the 2026 J.P. Morgan Healthcare Conference, Pfizer CEO Albert Bourla suggested the MFN policy could mean companies would raise overseas prices in line with those in the US, telling Reuters, “Shall we reduce the US price to France’s level or stop supplying France? We [will] stop supplying France.”The US has a leading 40% share of drugs in development globally, according to a GlobalData report. However, in second place is an increasingly competitive China with an approximately 20% share, leaving the five major European markets (5EU: France, Germany, Italy, Spain, and the UK) with 11%. GlobalData is the parent company of Pharmaceutical Technology.In December 2025, French President Emmanuel Macron met Chinese Premier Xi Jinping and both countries issued a statement committing to foster “a free, open, transparent, inclusive and non-discriminatory environment for trade and investment”.UK Prime Minister Keir Starmer visited the country in January 2026, during which AstraZeneca announced a $15bn investment in Chinese manufacturing. 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