Pharma tariffs: The EU's confident it can dodge US measures

The Commission is confident that the EU pharmaceutical industry will avoid a new 100% tariff rate announced by US President Donald Trump on Thursday and believes the sector will remain covered by the trade agreement it concluded in July with the US, establishing a 15% tariff cap on EU imports.

“This clear all-inclusive 15% tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators. The EU is the only trade partner to achieve this outcome with the US,” EU Commission deputy spokesperson Olof Gill said on Friday.

According to the Commission, the US intends to “promptly ensure” that the tariff rate on pharmaceuticals does not exceed 15%, despite President Trump announcing on social media that he would impose 100% tariffs on pharmaceutical drugs imported into the US.

“Starting October 1st, 2025, we will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America,” Trump wrote on Truth Social. “There will, therefore, be no tariff on these pharmaceutical products if construction has started.”

The US implements its part of the EU-US trade deal

EU officials believe that the US has so far been keeping its side of the deal agreed this summer, which makes them confident they will avoid Trump’s newly announced tariffs on pharma.

However, it remains a modest victory, as US tariffs on EU pharmaceutical products previously stood at 0%.

Dublin—whose pharmaceutical industry is the most exposed in the EU to US trade—remained cautious in response to Trump's announcement.

“We will be studying the impact of this announcement,” Ireland’s deputy prime minister, Tánaiste Simon Harris said in a statement, adding, however, that “the EU and US Joint Statement issued on 21 August last made absolutely clear that any new tariffs announced by the US on pharmaceuticals under its Section 232 investigation would be capped at 15% for pharma products being exported by the EU.”

After several weeks of delay, the US this week finally reduced its duties on EU cars from 27.5% to 15%, in line with the deal.

But trade negotiations are ongoing, with the US continuing to apply tariffs of 50% to EU steel and aluminium. In a joint statement at the end of August the parties indicated they hoped to reach an agreement on tariff rate quotas for the sector.

Negotiations are also ongoing to secure more exemptions, beyond those already granted by the White House on aircraft, certain generics and chemicals, and specific natural resources.

Wines and spirits are now a top priority for the Commission, under strong pressure from France, Italy, and Spain to provide relief to their industries.