European companies are a major source of medicines for the United States. Recently, the U.S. government announced it would place new tariffs on goods imported from Europe. This news has made the drugmakers wary.
A tariff is a tax on a product that is brought into a country to be sold. These new tariffs could significantly increase the cost of European medicines in the U.S., which might make them harder for people to afford.
Despite this concern, the European companies are somewhat hopeful. They have made large investments in the U.S. over the years. This means they have built factories and created jobs in America.
The companies believe that because of these strong business connections and existing trade agreements, the U.S. government might spare them from the tariffs. They are waiting to see if their long-term partnership with the U.S. will protect their business.