The recent tariff surge between major economies has injected new uncertainty into global trade. While much of the media focus has centred on consumer goods and manufacturing, the ripple effects are beginning to touch a far more delicate ecosystem: biotechnology. From clinical trial logistics to cross-border investment flows, the sector is facing fresh complexity at precisely the moment it needs stability.

Clinical Trials: When Supply Chains Become Strategic Variables

Clinical trials are among the most globally interconnected parts of biotech. Cell lines, reagents, and investigational products routinely cross multiple borders before reaching trial sites. New tariffs on specialised equipment and materials risk driving up costs and creating delays in already tight trial timelines.

For early-stage companies, even modest increases in cost can determine whether a trial proceeds or stalls. Many are responding by reassessing sourcing strategies and exploring regional partnerships to shorten supply chains. In Europe, we are already seeing a renewed focus on intra-EU manufacturing and distribution to insulate projects from tariff volatility.

Investment: Risk Appetite Meets Regulatory Reality

Investors, too, are adjusting. The biotech sector thrives on long-term capital and global collaboration, both of which rely on predictable trade conditions. The tariff hikes are unlikely to deter serious biotech investors, but they are influencing where and how that capital is deployed.

Venture funds are beginning to prefer companies with resilient, localised value chains, while corporate investors are leaning toward regions offering stronger trade protections or incentives. This could, in the short term, tilt investment away from smaller emerging markets and toward well-integrated ecosystems such as the EU, UK, and Singapore.

Collaboration: Science Crosses Borders, Tariffs Do Not

Scientific collaboration has always transcended geography. However, tariffs and shifting trade policies add friction that technology transfer agreements, joint research projects, and contract manufacturing organisations must now navigate carefully.

We are likely to see a more pragmatic form of collaboration emerge, one grounded in regional partnerships and strategic licensing rather than fully integrated global development. For example, a US-based company may license early-stage assets to European or Asian partners for regional advancement, thereby reducing exposure to tariff-driven cost inflation.

Outlook: A Slower but Smarter Globalisation

The long-term trajectory for biotech remains positive. Demand for novel therapies, personalised medicine, and cell-based innovation continues to grow, irrespective of trade barriers. What will change is the shape of that globalisation: less fluid, perhaps, but more thoughtful.

Companies will increasingly design their business models for resilience through distributed manufacturing, digital collaboration, and multi-regional supply redundancy. Those who adapt fastest will likely find opportunity in the disruption.

A Wait-and-See Moment

Tariffs are rarely permanent, but their secondary effects can last well beyond the policy cycle. For biotech, the prudent path forward is not retreat but recalibration, staying agile while maintaining scientific and commercial focus.

As the trade debate unfolds, one thing remains constant: innovation moves faster than regulation. The challenge for the sector will be to keep that momentum without losing cohesion across borders. For now, we wait and prepare.

Banner photo credit: Khamkéo on Unsplash