Business

Europe’s Pharma Industry Braces for Pain as Trump Tariff Threat Looms

Published

6 months ago

April 27, 2025

Europe’s Pharma Industry Braces for Pain as Trump Tariff Threat Looms

Insulin, heart treatments and antibiotics have flowed freely across many borders for decades, exempt from tariffs in a bid to make medicine affordable. But that could soon change.

For months, President Trump has been promising to impose higher tariffs on pharmaceuticals as part of his plan to reorder the global trading system and bring key manufacturing industries back to the United States. This month, he said pharmaceutical tariffs could come in the “not too distant future.”

If they do, the move would have serious — and wildly uncertain — consequences for drugs made in the European Union.

Pharmaceutical products and chemicals are the bloc’s No. 1 export to America. Among them are the weight-loss blockbuster Ozempic, cancer treatments, cardiovascular drugs and flu vaccines. Most are name-brand drugs that yield a large profit in the American market, with its high prices and vast numbers of consumers.

“These are critical things that keep people alive,” said Léa Auffret, who heads international affairs for BEUC, the European Consumer Organization. “Putting them in the middle of a trade war is highly concerning.”

European companies could react to Mr. Trump’s tariffs in a range of ways. Some pharmaceutical companies trying to dodge the tariffs have already announced plans to increase production in the United States, which Mr. Trump wants. Others could decide to move production there later.

Other companies appear to be staying put, but could raise their prices to cover the tariffs, pushing up costs for patients. And higher prices could affect not only American consumers, but also patients in Europe. Some companies have begun to argue that Europe should create more favorable conditions for their businesses by dismantling some of the rules that keep drug prices down.

Or some middle ground could play out: Companies might shift their financial profits to the United States for accounting purposes to avoid import charges, even as they leave their physical factories overseas to avoid the expenses of moving and challenges of having to set up new supply chains.

Ms. Auffret’s group has already warned European officials that they must not hit back at an attack on the important industry by tariffing American drugs in return: Tit for tat would come at too serious of a cost to European consumers.

But the pharmaceutical sector is complicated. Agreements with insurance companies and government agencies can make it difficult to rapidly adjust prices for branded drugs, while government regulations can make moving both a challenge and a long-term commitment. The upshot is that no one can confidently predict the outcome.

“We haven’t tariffed pharmaceuticals in a very long time,” said Brad W. Setser, an economist at the Council on Foreign Relations who has closely studied the tax rules that incentivize overseas production.

Even as Mr. Trump has paused his so-called “reciprocal” tariffs in favor of an across-the-board rate of 10 percent during the hiatus, he has left in place some industry-specific tariffs and made clear that computer chips and pharmaceutical products would be next. The United States recently kicked off investigations into both sectors, a first step toward hitting them with tariffs.

Many industry experts expect that the new tariffs could be 25 percent, in line with those on steel, aluminum and cars.

For the countries at the center of Europe’s drug industry, the possible tariffs are particularly worrisome. That is especially true for Ireland, where pharmaceuticals make up 80 percent of all exports to the United States.

Many drug companies originally moved to Ireland because it offers very low corporate tax rates. But it has also worked to develop its pharmaceutical industry and offers access to a highly skilled work force.

In recent years, the sector has grown rapidly. More than 90 pharmaceutical companies are now based there, according to Ireland’s Foreign Direct Investment Agency, and many of the biggest American drugmakers have operations in the nation. Last year, Ireland’s pharma industry exported 58 billion euros, or about $66 billion, in pharmaceutical and chemical products to the United States.

“The Irish are smart, yes, smart people,” Mr. Trump said in March, while Prime Minister Micheál Martin of Ireland was visiting the White House. “You took our pharmaceutical companies and other companies,” he said. “This beautiful island of five million people has got the entire U.S. pharmaceutical industry in its grasps.”

Now, tariffs could chip away at the benefits of manufacturing there — which is Mr. Trump’s goal.

“In the U.S., we don’t make our own drugs anymore,” Mr. Trump said last week from the Oval Office, adding that “the drug companies are in Ireland.”

Firms are already bracing. Companies have been rushing to export their pharmaceuticals from Ireland and into the U.S. market before the gauntlet falls, statistics suggest.

Nor is Ireland the only country affected. Germany, Belgium, Denmark and Slovenia are also major exporters.

“It’s an enormous issue for Europe,” said Penny Naas, who leads a competitiveness program for the think tank the German Marshall Fund and has long worked in European public policy and corporate affairs.

European leaders have been reaching out to both American officials and the industry. In addition to the Irish prime minister’s recent visit to the Oval Office, the Irish foreign affairs minister traveled to Washington to meet with the commerce secretary.

Ursula Von der Leyen, the president of the European Commission, the European Union’s executive arm, has met in Brussels with the European Federation of Pharmaceutical Industries and Associations, the lobby group representing Europe’s biggest drugmakers.

The industry is leveraging the moment to push for wish-list items, like less red tape.

The European drug lobby group told Ms. von der Leyen that companies could shift production or investment toward the United States to limit their exposure to Mr. Trump’s tariffs, especially when faster approvals and easier access to capital are making America more attractive.

At least 18 members of the group, which includes Bayer, Pfizer and Merck, have planned nearly €165 billion in investments in the European Union over the next five years. As much as half of that could shift to the United States, the federation said. Nor is it alone in that prediction.

“Pharma needs more attractive conditions to produce in Europe,” said Dorothee Brakmann, the director of Pharma Deutschland, Germany’s largest association of pharmaceutical companies.

Such warnings seem to have teeth. Some companies have begun to lay out plans to spend more in the United States; the firm Roche last week announced a $50 billion American investment plan, the latest in a string of such announcements.

In commentary published last week, the chief executives of Novartis and Sanofi suggested that less regulation was not enough to stem the bleeding. They argued that “European price controls and austerity measures reduce the attractiveness of its markets,” and that the bloc should pave the way for higher prices.

Industry executives have also warned that tariffs on the sector could disrupt supply lines, impair patient access and dampen research and development.

“There’s a reason” that tariffs on medicines are set to zero, Joaquin Duato, the chief executive of the drugmaker Johnson & Johnson, said on a recent earnings call. “It’s because tariffs can create disruptions in the supply chain, leading to shortages.”

Ms. von der Leyen has emphasized similar concerns, warning that tariffs on the pharmaceutical sector risk “implications for globally interconnected supply chains and availability of medicines for European and U.S. patients alike.”

Pharmaceutical tariffs also hold another danger for the European Union.

The bloc has been trying to build up its ability to manufacture generic drugs, which are medically essential but much less profitable than the name-brand products, and are frequently made in Asia.

But if U.S. tariffs mean that generic drug manufacturers in China and India are suddenly looking for customers outside of America, it could send a flood of cheaper-than-usual pills toward Europe.

That could make it even more difficult for the European Union to establish a domestic manufacturing base for generics, even as tariffs lure name-brand drug production toward the United States.

“We do think that it’s likely that this is going to cause increased investment in the U.S.,” said Diederik Stadig, a sectoral economist at ING. “The European Commission needs to be on the ball.”

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Business

Sora app’s hyperreal AI videos ignite online trust crisis as downloads surge

Published

8 hours ago

October 26, 2025

Press Room

Sora app’s hyperreal AI videos ignite online trust crisis as downloads surge

Scrolling through the Sora app can feel a bit like entering a real-life multiverse.

Michael Jackson performs standup; the alien from the “Predator” movies flips burgers at McDonald’s; a home security camera captures a moose crashing through the glass door; Queen Elizabeth dives from the top of a table at a pub.

Such improbable realities, fantastical futures, and absurdist videos are the mainstay of the Sora app, a new short video app released by ChatGPT maker OpenAI.

The continuous stream of hyperreal, short-form videos made by artificial intelligence is mind-bending and mesmerizing at first. But it quickly triggers a new need to second-guess every piece of content as real or fake.

“The biggest risk with Sora is that it makes plausible deniability impossible to overcome, and that it erodes confidence in our ability to discern authentic from synthetic,” said Sam Gregory, an expert on deepfakes and executive director at WITNESS, a human rights organization. “Individual fakes matter, but the real damage is a fog of doubt settling over everything we see,”

All videos on the Sora app are entirely AI-generated, and there is no option to share real footage. But from the first week of its launch, users were sharing their Sora videos across all types of social media.

Less than a week after its launch Sept. 30, the Sora app crossed a million downloads, outpacing the initial growth of ChatGPT. Sora also reached the top of the App Store in the U.S. For now, the Sora app is available only to iOS users in the United States, and people cannot access it unless they have an invitation code.

To use the app, people have to scan their faces and read out three numbers displayed on screen for the system to capture a voice signature. Once that’s done, users can type a custom text prompt and create hyperreal 10-second videos complete with background sound and dialogue.

Through a feature called “Cameos,” users can superimpose their face or a friend’s face into any existing video. Though all outputs carry a visible watermark, numerous websites now offer watermark removal for Sora videos.

At launch, OpenAI took a lax approach to enforcing copyright restrictions and allowed the re-creation of copyrighted material by default, unless the owners opted out.

Users began generating AI video featuring characters from such titles as “SpongeBob SquarePants,” “South Park,” and “Breaking Bad,” and videos styled after the game show “The Price Is Right,” and the ‘90s sitcom “Friends.”

Then came the re-creation of dead celebrities, including Tupac Shakur roaming the streets in Cuba, Hitler facing off with Michael Jackson, and remixes of the Rev. Martin Luther King Jr. delivering his iconic “I Have A Dream” speech — but calling for freeing the disgraced rapper Diddy.

“Please, just stop sending me AI videos of Dad,” Zelda Williams, daughter of late comedian Robin Williams, posted on Instagram. “You’re not making art, you’re making disgusting, over-processed hot dogs out of the lives of human beings, out of the history of art and music, and then shoving them down someone else’s throat, hoping they’ll give you a little thumbs up and like it. Gross.”

Other dead celebrity re-creations, including Kobe Bryant, Stephen Hawking and President Kennedy, created on Sora have been cross-posted on social media websites, garnering millions of views.

Christina Gorski, director of communications at Fred Rogers Productions, said that Rogers’ family was “frustrated by the AI videos misrepresenting Mister Rogers being circulated online.”

Videos of Mr. Rogers holding a gun, greeting rapper Tupac, and other satirical fake situations have been shared widely on Sora.

“The videos are in direct contradiction to the careful intentionality and adherence to core child development principles that Fred Rogers brought to every episode of Mister Rogers’ Neighborhood. We have contacted OpenAI to request that the voice and likeness of Mister Rogers be blocked for use on the Sora platform, and we would expect them and other AI platforms to respect personal identities in the future,” Gorski said in a statement to The Times.

Hollywood talent agencies and unions, including SAG-AFTRA, have started to accuse OpenAI of improper use of likenesses. The central tension boils down to control over the use of the likenesses of actors and licensed characters — and fair compensation for use in AI videos.

In the aftermath of Hollywood’s concerns over copyright, Sam Altman shared a blog post, promising greater control for rights-holders to specify how their characters can be used in AI videos — and is exploring ways to share revenue with rights-holders.

He also said that studios could now “opt-in” for their characters to be used in AI re-creations, a reversal from OpenAI’s original stance of an opt-out regime.

The future, according to Altman, is heading toward creating personalized content for an audience of a few — or an audience of one.

“Creativity could be about to go through a Cambrian explosion, and along with it, the quality of art and entertainment can drastically increase,” Altman wrote, calling this genre of engagement “interactive fan fiction.”

The estates of dead actors, however, are racing to protect their likeness in the age of AI.

CMG Worldwide, which represents the estates of deceased celebrities, struck a partnership with deepfake detection company Loti AI to protect CMG’s rosters of actors and estates from unauthorized digital use.

Loti AI will constantly monitor for AI impersonations of 20 personalities represented by CMG, including Burt Reynolds, Christopher Reeve, Mark Twain and Rosa Parks.

“Since the launch of Sora 2, for example, our signups have increased roughly 30x as people search for ways to regain control over their digital likeness,” said Luke Arrigoni, co-founder and CEO of Loti AI.

Since January, Loti AI said it has removed thousands of instances of unauthorized content as new AI tools made it easier than ever to create and spread deepfakes.

After numerous “disrespectful depictions” of Martin Luther King Jr., OpenAI said it was pausing the generation of videos in the civil rights icon’s image on Sora, at the request of King’s estate. While there are strong free-speech interests in depicting historical figures, public figures and their families should ultimately have control over how their likeness is used, OpenAI said in a post.

Now, authorized representatives or estate owners can request that their likenesses not be used in Sora cameos.

As legal pressure mounts, Sora has become more strict about when it will allow the re-creation of copyrighted characters. It increasingly puts up content policy violations notices.

Now, creating Disney characters or other images triggers a content policy violation warning. Users who aren’t fans of the restrictions have started creating video memes about the content policy violation warnings.

There’s a growing virality to what has been dubbed “AI slop.”

Last week featured ring camera footage of a grandmother chasing a crocodile at the door, and a series of “fat olympics” videos where obese people participate in athletic events such as pole vault, swimming and track events.

Dedicated slop factories have turned the engagement into a money spinner, generating a constant stream of videos that are hard to look away from. One pithy tech commentator dubbed it “Cocomelon for adults.”

Even with increasing protections for celebrity likenesses, critics warn that the casual “likeness appropriation” of any common person or situation could lead to public confusion, enhance misinformation and erode public trust.

Meanwhile, even as the technology is being used by bad actors and even some governments for propaganda and promotion of certain political views, people in power can hide behind the flood of fake news by claiming that even real proof was generated by AI, said Gregory of WITNESS.

“I’m concerned about the ability to fabricate protest footage, stage false atrocities, or insert real people with words placed in their mouths into compromising scenarios,” he said.

Business

After ‘Megalopolis’ flops, Francis Ford Coppola puts his pricey watch collection up for auction

Published

2 days ago

October 24, 2025

Press Room

After ‘Megalopolis’ flops, Francis Ford Coppola puts his pricey watch collection up for auction

Francis Ford Coppola wants an offer he can’t refuse — on his timepieces.

The Academy Award-winning director is selling seven watches from his personal collection, including his custom F.P. Journe FFC Prototype, estimated to sell for more than $1 million, according to a statement from Phillips, the New York City-based auction house. Phillips will hold the auction on Dec. 6 and 7.

The sale could help stanch losses from last year’s box-office flop “Megalopolis,” which cost over $120 million to make and was largely financed by the 86-year-old director. The movie grossed only $14.3 million worldwide.

The film, Coppola’s first since his 2011 horror movie “Twixt,” premiered at Cannes last year to largely negative reviews. The Times’ Joshua Rothkopf called it a “wildly ambitious, overstuffed city epic.”

At a news conference at Cannes, Coppola discussed the tremendous amount of his own money that he had sunk into the film, saying that he “never cared about money” and that his children “don’t need a fortune.”

Among the Coppola timepieces also going under the hammer are examples from Patek Philippe, Blancpain and IWC.

But the headlining piece is the F.P. Journe FFC Prototype that features a black titanium, human-like hand that resembles a steampunk gauntlet that articulates the hours when the fingers extend or retract.

Francis Ford Coppola’s custom F.P. Journe FFC timepiece uses a single hand to indicate all 12 hours.

(Phillips)

The watch was a collaboration between Coppola and master watchmaker François-Paul Journe that began following a conversation the pair had during a visit he made to the filmmaker’s Inglenook winery in Napa Valley in 2012.

Coppola asked Journe if a human hand had ever been used to mark time. That question sparked a years-long conversation during which the watchmaker grappled with how to indicate the 12 hours of the dial using just five fingers.

Journe found his inspiration in Ambroise Paré, a 16th century French barber surgeon and an innovator of prosthetic limbs in particular, including Le Petit Lorrain, a prosthetic hand made of iron and leather that featured hidden gears and springs enabling the fingers to move, not dissimilar to a watch mechanism.

“Speaking with Francis in 2012 and hearing his idea on the use of a human hand to indicate time inspired me to create a watch I never could have imagined myself. The challenge was formidable — exactly the type of watchmaking project I adore,” said Journe in a statement.

Journe eventually created six prototypes and delivered Coppola’s watch to him in 2021.

“I’m proud to fully support the sale of this watch through Phillips to fund the creation of his artistic masterpieces in filmmaking,” he said.

Coppola first became interested in the watchmaker when he gifted his wife Eleanor an F.P. Journe Chronomètre à Résonance in platinum with a white gold dial for Christmas in 2009, prompting the director to extend an invitation to Journe to visit him at his Napa winery.

Eleanor Coppola, a documentary filmmaker and writer, died in 2024 after 61 years of marriage. Her F.P. Journe timepiece is also part of the auction and is estimated to fetch between $120,000 to $240,000.

Business

Disney warns that ESPN, ABC and other channels could go dark on YouTube TV

Published

3 days ago

October 24, 2025

Press Room

Disney warns that ESPN, ABC and other channels could go dark on YouTube TV

Walt Disney Co. is alerting viewers that its channels may go dark on YouTube TV amid tense contract negotiations between the two television giants.

The companies are struggling to hammer out a new distribution deal on YouTube TV for Disney’s channels, including ABC, ESPN, FX, National Geographic and Disney Channel. YouTube TV has become one of the most popular U.S. pay-TV services, boasting about 10 million subscribers for its packages of traditional television channels.

Those customers risk losing Disney’s channels, including KABC-TV Channel 7 in Los Angeles and other ABC affiliates nationwide if the two companies fail to forge a new carriage agreement by Oct. 30, when their pact expires.

“Without an agreement, we’ll have to remove Disney’s content from YouTube TV,” the Google Inc.-owned television service said Thursday in a statement.

Disney began sounding the alarm by running messages on its TV channels to warn viewers about the blackout threat.

The Burbank entertainment company becomes the latest TV programmer to allege that the tech behemoth is throwing its weight around in contract negotiations.

In recent months, both Rupert Murdoch’s Fox Corp. and Comcast’s NBCUniversal publicly complained that Google’s YouTube TV was attempting to unfairly squeeze them in their separate talks. In the end, both Fox and NBCUniversal struck new carriage contracts without their channels going dark.

Univision wasn’t as fortunate. The smaller, Spanish-language media company’s networks went dark last month on YouTube TV when the two companies failed to reach a deal.

“For the fourth time in three months, Google’s YouTube TV is putting their subscribers at risk of losing the most valuable networks they signed up for,” a Disney spokesperson said Thursday in a statement. “This is the latest example of Google exploiting its position at the expense of their own customers.”

YouTube TV, for its part, alleged that Disney was the one making unreasonable demands.

“We’ve been working in good faith to negotiate a deal with Disney that pays them fairly for their content on YouTube TV,” a YouTube TV spokesperson said in a statement. “Unfortunately, Disney is proposing costly economic terms that would raise prices on YouTube TV customers and give our customers fewer choices, while benefiting Disney’s own live TV products – like Hulu + Live TV and, soon, Fubo.”

Disney’s Hulu + Live TV competes directly with YouTube TV by offering the same channels. Fubo is a sports streaming service that Disney is in the process of acquiring.

YouTube said if Disney channels remain “unavailable for an extended period of time,” it would offer its customers a $20 credit.

The contract tussle heightens tensions from earlier this year, when Disney’s former distribution chief, Justin Connolly, left in May to take a similar position at YouTube TV. Connolly had spent two decades at Disney and ESPN and Disney sued to block the move, but a judge allowed Connolly to take his new position.

YouTube TV launched in April 2017 for $35 a month. The package of channels now costs $82.99.

To attract more sports fans, YouTube TV took over the NFL Sunday Ticket premium sports package from DirecTV, which had been losing more than $100 million a year to maintain the NFL service. YouTube TV offers Sunday Ticket as a base plan add-on or as an individual channel on YouTube.

Last year, YouTube generated $54.2 billion in revenue, second only to Disney among television companies, according to research firm MoffettNathanson.

The dispute comes as NFL and college football is in full swing, with games on ABC and ESPN. The NBA season also tipped off this week and ESPN prominently features those games. ABC’s fall season began last month with fresh episodes of such favorite programs as “Dancing with the Stars” and “Abbott Elementary.”

ABC stations also air popular newscasts including “Good Morning America” and “World News Tonight with David Muir.” Many ABC stations, including in Los Angeles, run Sony’s “Wheel of Fortune” and “Jeopardy!”

“We invest significantly in our content and expect our partners to pay fair rates that recognize that value,” Disney said. “If we don’t reach a fair deal soon, YouTube TV customers will lose access to ESPN and ABC, and all our marquee programming – including the NFL, college football, NBA and NHL seasons – and so much more.”