Jessica Martinsson, CEOAfter several years of increasing export figures, Sweden’s pharmaceutical exports now risk being severely affected by the Trump administration’s tariffs, warns the industry association SwedenBIO.
In 2024, Sweden exported pharmaceutical products worth SEK 150 billion, of which 16 percent went to the U.S. Trump’s tariffs on the EU and the rest of the world could have significant consequences for this export, according to industry representatives.
"The production of pharmaceutical products is complex and relies on well-functioning global supply chains. The industry now faces major disruptions that will drive up prices and may even lead to shortages of certain medicines," says Jessica Martinsson, CEO of SwedenBIO, the industry association representing Swedish life science companies.
Following the announcement of the tariffs late Tuesday Swedish time, the White House issued a new statement on Wednesday granting a temporary exemption for pharmaceuticals, lumber, semiconductors and other sectors. However, according to this new statement, the Trump administration plans to introduce separate tariffs for these industries at a later stage.
"This temporary relief is welcome, as time is of the essence, but the problem remains and must be addressed by Sweden and the EU collectively. In the long run, the EU’s life science industry will likely need to reduce its dependence on the U.S. to mitigate the impact of extraordinary events like these. We are being thrown into a chaotic situation reminiscent of the COVID pandemic, which exposed vulnerabilities in the supply of medicines and medical technology," Martinsson explains.
However, the exemption announced on Wednesday does not cover all segments of the life science industry. For example, the proposed tariffs will still apply to medical technology products.
"Ultimately, these tariffs will also hurt the U.S. and American patients. Production costs will increase even for American pharmaceutical companies, as the tariffs will disrupt supply chains for critical raw materials, packaging, and consumables needed to manufacture medicines," says Martinsson.
The industry association SwedenBIO works to promote a competitive life science sector in Sweden. We do this by facilitating effective networking between different industry players, building knowledge, and giving the sector a strong voice in public debate. Our 330+ member companies are active in pharmaceutical development, biotechnology, medical technology, and diagnostics, or are experts in areas such as business development, financing, intellectual property, and legal affairs.
