Europe’s Pharma Titans Warn They May Relocate To U.S.

Europe’s biggest pharmaceutical companies confronted European Commission President Ursula von der Leyen as Donald Trump promised the imminent arrival of tariffs on U.S. drug imports, Ryan Hogg reported for Fortune.

The European Federation of Pharmaceutical Industries and Associations (EFPIA) warned of a potential exodus to the U.S. if radical reforms are not enacted.

Speaking at a National Republican Congressional Committee (NRCC) dinner, Trump told guests that the White House would announce a “major tariff” on pharmaceutical imports “very shortly,” drawing applause from the partisan crowd.

“We’re going to tariff our pharmaceuticals, and once we do that, they’re going to come rushing back into our country because we’re a big market,” Trump said.

“Something that sells for $88 in London sells for $1,300 here, made in the same factory by the same company.”

Trump predicted that once tariffs take effect, pharmaceutical firms would abandon overseas manufacturing bases and build plants in the U.S.

In a twist, Trump got help in sending that message to one of his key opponents—the EU—from European pharma companies themselves.

The European Federation of Pharmaceutical Industries and Associations (EFPIA), the main lobby group for the sector, held emergency talks with von der Leyen, warning of a potential exodus to the U.S. if radical reforms are not enacted.

EFPIA told the European Commission that €103.2 billion ($113.8 billion) in capital and R&D investment plans are at risk in Europe due to mounting uncertainty.

“The U.S. now leads Europe on every investor metric—from capital availability and IP protections to speed of approval and rewards for innovation,” the group warned.