Trump's New Pharmaceutical Tariffs Set at 15 Percent for EU — What It Means for Portugal's Drug Industry

President Donald Trump signed executive orders on 2 April imposing tariffs of up to 100 percent on patented pharmaceuticals imported into the United States, marking the one-year anniversary of his 'Liberation Day' trade offensive. But for EU member states including Portugal, the headline figure is considerably lower: 15 percent, under the terms of the broader trade framework already agreed between Washington and Brussels.

The orders, announced at the White House alongside adjustments to existing steel, aluminium and copper duties, represent the latest chapter in an evolving tariff regime that has already reshaped global supply chains — and poses specific questions for Portugal's growing pharmaceutical manufacturing sector.

The new tariff structure

Under the executive order, patented drugs from countries without a trade agreement with the United States face tariffs of up to 100 percent. Companies that commit to building production facilities on American soil but lack a pricing deal will pay 20 percent, with escalation to 100 percent over four years. Those that both agree to 'most favoured nation' pricing and invest in US manufacturing can qualify for a zero tariff.

For countries that have signed trade frameworks with Washington — including the EU, Japan, South Korea and Switzerland — a flat 15 percent tariff applies. The United Kingdom, which negotiated separately, will pay 10 percent initially, with a pathway to zero.

Larger companies face a 120-day implementation window; smaller firms have 180 days. The White House said 17 pricing deals had been reached with major drugmakers, 13 of which were already signed, though no specific companies were named.

Portugal's pharmaceutical exposure

Portugal's pharmaceutical sector has been on a growth trajectory. The country exported roughly 1.7 billion euros in pharmaceutical products in 2024, and several Portuguese firms have deep ties to the US market.

Hovione, headquartered in Loures, is one of Europe's leading contract development and manufacturing organisations (CDMOs) for active pharmaceutical ingredients. The company already operates a facility in New Jersey and is investing more than 170 million dollars in global expansion, including a new continuous manufacturing plant expected to open in the US by the end of 2026. Hovione's existing American presence may provide a degree of insulation from the new tariffs.

Bial, Portugal's largest pharmaceutical company, has been expanding its US footprint, particularly in neuroscience drugs. Bluepharma, based in Coimbra, has pioneered FDA approvals for solid oral dosage forms manufactured in Portugal and focuses on oncology and advanced drug delivery.

For these companies, the 15 percent EU rate is manageable compared to the 100 percent maximum — but it still represents a new cost layer on exports to what remains one of the world's largest drug markets. Companies already building in the US, like Hovione, may qualify for further reductions.

The broader trade context

The pharmaceutical tariffs arrive against a backdrop of escalating trade tensions. In February, the US Supreme Court struck down Trump's original Liberation Day tariffs imposed under the International Emergency Economic Powers Act, ruling the president had overstepped his authority. The administration now owes an estimated 175 billion dollars in refunds to importers who paid those duties.

To compensate for the lost revenue, the administration imposed a baseline 10 percent tariff on all imports under the Trade Act of 1974, though this can only last 150 days without congressional approval. The pharmaceutical and metals tariffs, imposed under Section 232 of the 1962 Trade Expansion Act, rest on more durable legal ground.

For Portugal, the tariff landscape is already being felt. The country's fuel tax discount announced this week was partly a response to energy price pressures linked to Middle East tensions and trade disruption. The Bank of Portugal's revised 2026 growth forecast of just 1.8 percent already factors in trade uncertainty.

What happens next

The EU is still assessing the full implications. A European Commission spokesperson said Brussels would review the pharmaceutical tariff details but noted that the 15 percent rate was consistent with the agreed trade framework for most goods.

PhRMA, the US pharmaceutical industry trade group, warned that tariffs on 'cutting-edge medicines will increase costs and could jeopardise billions in US investments,' noting that drugs sourced from abroad 'overwhelmingly come from reliable US allies.'

For Portugal's pharma sector, the next 120 to 180 days will be critical. Companies with existing or planned US manufacturing — particularly Hovione — are best positioned. Those relying on cross-Atlantic exports will need to weigh whether 15 percent tariffs justify accelerating their own onshoring plans.

The broader question is whether trade friction becomes a permanent feature of transatlantic commerce or whether the deals Trump is striking with individual companies create a pathway to lower barriers. For now, Portugal's drugmakers face a new reality: access to the American market comes at a price.

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