Czechia’s generic-heavy pharma sector downplays US tariff risks

Czechia is striking a calm tone on possible US medicine tariffs, assessing that the direct impact on domestic producers should be limited.

Under the current EU–US arrangement, most European products will be subject to a 15% duty, including brand-name drugs, active pharmaceutical ingredients (APIs), and related chemical precursors; however, generics are likely to remain largely duty-free.

Despite residual uncertainty, Czechia remains calm. “The United States is not among the main export markets for the Czech pharmaceutical industry; this trend applies more to other EU countries,” Czech Industry and Trade Ministry spokesperson Marek Vošahlík told Euractiv.

The ministry argues that any additional tariffs on pharmaceutical products would primarily raise costs for US consumers, with only limited effects at home.

“In connection with the American tariffs, we do not expect problems with shortages of medicines or price increases, because the tariffs target European exports; moreover, European exports significantly exceed imports from the USA, and active pharmaceutical ingredients are imported into the EU primarily from China and India,” Vošahlík explained.

No tariff on selected generics

The Czech Association of Pharmaceutical Firms (ČAFF), representing the local generics industry, welcomes the likelihood that selected generics will remain tariff-free.

It estimates that Czech manufacturers ship roughly €165–200 million of medicines to the US each year, largely generics, and expects many of these to be spared. Among medicines exported from Czechia to the US are, for example, cholesterol-lowering and blood pressure medications, antidepressants, antiparkinsonian drugs or sedatives.

According to ČAFF, the ongoing US review could exempt entire categories that are scarcely produced domestically, are already low-priced by global standards, and are mainly imported from the EU – so duties would mostly lift US prices without boosting competitiveness.

“Moving production to the US would take a long time and would not ultimately make medicines cheaper for patients there,” said ČAFF executive director Filip Vrubel.

Innovative segment sounds alarm

Czechia’s pharma base is dominated by generics, which helps explain the relaxed tone from both the ministry and ČAFF. But there is also an innovative segment, smaller than generics yet significant, that is much more anxious.

The Czech Association of Innovative Pharmaceutical Industry (AIFP) warns that tariffs would be an “unprecedented intervention” in the global medicines market.

It notes that EU pharmaceutical exports to the United States reach up to €120 billion annually, versus €38.9 billion for cars, adding that medicines, active ingredients and intermediates have been tariff-free since a 1994 WTO agreement designed to maximise access.

AIFP argues that new barriers could hurt availability and lengthen delivery times for medicines and inputs, and weigh on decisions about research, manufacturing and clinical trials. AIFP director David Kolář added that although the direct impact on Czechia is so far limited, “we are strongly connected to the European economy – so the effects may be felt here as well.”

[VA, BM]

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