The European Union stressed on Friday that it has secured a cap on U.S. tariffs on pharmaceutical imports, despite President Donald Trump announcing a plan to set a 100% levy on the industry next week, according to media reports.
The European Commission, the executive arm of the EU, pointed to a joint statement issued with the United States following a trade deal notched in July, the reports said. The statement had noted that tariffs for drugs, semiconductors and lumber would not be higher than 15%.
A spokesperson for the Commission told Reuters that "[t]his clear all-inclusive 15% tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators."
Elsewhere, Japan flagged its own joint statement with Washington, in which it was stated that U.S. tariff rates on Japanese chips and drugs would not surpass those set on other countries.
In a social media post on Thursday, Trump unveiled a slew of new trade tariffs. Along with the heightened levy on any "branded or patented Pharmaceutical Product," the duties also included a 25% tariff on heavy truck imports, a 50% tariff on kitchen and bathroom fittings, and a 30% tariff on upholstered furniture. Trump said they will take effect from October 1.
But Trump added that any companies building manufacturing plants in the U.S. will be exempt from the tariffs, specifying that the companies needed to have at least broken ground or started constructing U.S. facilities.
Trump has repeatedly threatened to tariff pharma imports since taking office at the beginning of the year, and has also instructed his administration to conduct a national security review of the sector.
In August, Trump said he could raise his pharma tariffs as high as 250%, with the move largely aimed at boosting domestic production. Trump’s tariff threats have drawn pledges of hundreds of billions of dollars in U.S. investment from major pharma firms.
Source :
https://www.investing.com/news/economy-news/eu-says-us-pharma-tariffs-remain-capped-at-15--reports-4257234
