Published by Global Banking and Finance Review
Posted on May 14, 2025
By Andrew Silver
SHANGHAI (Reuters) -German healthcare and materials group Merck KGaA has dropped a surcharge on life sciences sector orders within China following the U.S.-China agreement to pause sky-high tariffs on each other, the company said Wednesday.
The agreement, announced on Monday, will see U.S. tariffs on Chinese goods fall to 30% from 145% for 90 days, while China will reduce tariffs on U.S. products to 10% from 125%.
"Following the joint statement ... on reciprocal tariffs, our Life Science business sector has discontinued the temporary surcharge on orders within China, effective immediately," a Merck spokesperson told Reuters in response to queries about fees.
Chinese media first reported about the surcharge being dropped.
Merck, whose products include chemical reagents, had implemented "temporary" surcharges in select markets, with the amount varying by country, in response to tariffs affecting its operations such as supply chain and procurement costs, the spokesperson said.
"Unlike a price increase, the temporary surcharge gives us the flexibility to adjust or remove it if the external environment changes," the spokesperson added.
The person declined to comment on orders.
The tariff drops have been welcome by some in the pharmaceutical industry.
A spokesperson for weight loss drugmaker Shanghai Benemae Pharmaceutical told Reuters that it was notified on Wednesday that Merck's fees would not be collected.
It uses some reagents and other materials manufactured in the U.S. by the likes of Merck and Thermo Fisher Scientific.
"Tariffs fall down to the previous levels, our company then isn't affected," the spokesperson for the Chinese firm said.
A spokesperson for Thermo Fisher did not respond to a request for comment on the announcement of the Chinese government tariffs being lowered.
(Reporting by Andrew SilverEditing by Mark Potter)
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