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

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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.”

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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.

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“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.

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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.

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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.

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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.

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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.

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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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Video: Why Your Paycheck Feels Smaller

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Video: Why Your Paycheck Feels Smaller

new video loaded: Why Your Paycheck Feels Smaller

Ben Casselman, our chief economics correspondent, explains why wages are not keeping up with inflation and what that means for American workers and the economy.

By Ben Casselman, Nour Idriss, Sutton Raphael and Stephanie Swart

April 18, 2026

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.

On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.

During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.

The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.

The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.

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(Jae C. Hong / Associated Press)

Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.

Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.

“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”

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The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.

Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.

Attorneys representing Baldwin and the producers were not immediately available for comment.

Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.

On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.

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The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.

Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.

New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.

Baldwin faced a similar charge, but the case against him unraveled spectacularly.

On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.

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Variety first reported on Friday’s court action.

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California’s gas prices push Uber and Lyft drivers off the road

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California’s gas prices push Uber and Lyft drivers off the road

The highest gas prices in the country are making it tougher for some gig drivers to make a living.

Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.

While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.

John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.

“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”

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Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.

Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.

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Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.

The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.

On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.

Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.

That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.

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“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.

Pedestrians cross the street in front of a Lyft and Uber driver.

Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.

(Jess Lynn Goss / For The Times)

Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.

Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.

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“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.

Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”

The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.

Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.

“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”

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Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”

Guests at The Westin St. Francis hotel get into an Uber.

Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig workers have struggled with rising gas prices in the past.

In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.

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Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.

Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.

“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.

Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.

He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.

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Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”

A man stands for a portrait in a white button up shirt

John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.

(Jess Lynn Goss / For The Times)

Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.

“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”

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In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.

“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”

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