{"id":452954,"date":"2025-09-26T14:03:20","date_gmt":"2025-09-26T14:03:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/452954\/"},"modified":"2025-09-26T14:03:20","modified_gmt":"2025-09-26T14:03:20","slug":"european-union-reveal-how-latest-pharmaceutical-tariffs-will-impact-exports","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/452954\/","title":{"rendered":"European Union reveal how latest pharmaceutical tariffs will impact exports"},"content":{"rendered":"

The European Union has sought to calm fears after U.S. President Donald Trump<\/a><\/strong> announced sweeping new pharmaceutical tariffs, insisting that an existing trade deal protects Europe\u2019s drugmakers from the steepest levies.<\/p>\n

Trump revealed that starting 1 October, the United States would impose a 100% tariff <\/a>on \u201cany branded or patented pharmaceutical unless a company is building their pharmaceutical plant in America.\u201d<\/p>\n

He defined this requirement as \u201cbreaking ground and\/or under construction.\u201d<\/p>\n

The move is part of his wider push to encourage domestic manufacturing, but its immediate scope for international partners remains uncertain.<\/p>\n

Officials in Brussels were quick to underline that Europe is shielded from such measures under a bilateral agreement reached in July.<\/p>\n

The deal capped tariffs on a range of goods, including pharmaceutical products, at 15%.<\/p>\n

\u201cThe European Union’s trade deal with the United States shields the union’s pharmaceutical exports from tariffs higher than 15%,\u201d the European Commission<\/a> said in a statement.<\/p>\n

The EU pointed to the joint pledge in which Washington committed that tariffs on pharmaceuticals, semiconductors, and lumber would not exceed the 15% ceiling.<\/p>\n

Trade spokesman Olof Gill<\/strong> described the clause as a safeguard.<\/p>\n

\u201cThis clear all-inclusive 15% tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators,\u201d he said.<\/p>\n

Gill added that \u201cthe EU and US continue engaging towards implementing the joint statement commitments, while exploring further areas for tariff exemptions as well as wider cooperation.\u201d<\/p>\n

Nonetheless, the sudden U.S. announcement raised eyebrows.<\/p>\n

\u201cThe US announcement came out of the blue in some respects,\u201d Gill admitted, though he stressed, \u201cbut it doesn’t have any meaningful impact for the European Union.\u201d<\/p>\n

He reiterated that \u201cwe [EU] have a clear all-inclusive 15% tariff ceiling arising from our deal with the US … and we look forward to that being implemented soon.\u201d<\/p>\n

\"pharmaceuticalEU Commissioner for Trade Maros Sefcovic. (Photo by Thierry Monasse\/Getty Images)<\/p>\n

According to Gill, the terms are written \u201cin black and white\u201d and represent a \u201cclear commitment.\u201d<\/p>\n

European Commissioner for Trade Maro\u0161 \u0160ef<\/strong>\u010dovi<\/strong>\u010d<\/strong> has already met his U.S. counterpart Jamieson Greer<\/strong> to discuss the matter, underscoring Brussels\u2019 determination to ensure that the deal holds and Europe\u2019s pharmaceutical industry remains insulated from tariff shocks.<\/p>\n

Reacting to the news, Aidan Meagher<\/strong>, EY Ireland Tax Partner and Life Sciences Tax and Law Lead, said: \u201cThe European Commission has confirmed that the US pharmaceutical tariff announcement will not impact the EU, citing the July EU-US Joint Statement which caps pharma tariffs at 15%.<\/p>\n

\u201cWhile this reassurance is welcome, further clarity is needed from the US administration on the legislative basis for the proposed 100% tariff, whether it falls under the International Emergency Economic Powers Act (IEEPA) or Section 232.<\/p>\n

\u201cAt this stage, it\u2019s important to confirm that the US aligns with the EU\u2019s interpretation of the agreement.<\/p>\n

\u201cFor Ireland, it is of particular importance given our role as a major pharmaceutical hub, to understand whether companies with existing or planned US manufacturing operations will be exempted, and whether a definitive list of such companies will be published.”<\/p>\n","protected":false},"excerpt":{"rendered":"The European Union has sought to calm fears after U.S. President Donald Trump announced sweeping new pharmaceutical tariffs,…\n","protected":false},"author":2,"featured_media":452955,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[2000,299,5187,1699],"class_list":{"0":"post-452954","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-eu","9":"tag-europe","10":"tag-european","11":"tag-european-union"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115270976720685733","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/452954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=452954"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/452954\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/452955"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=452954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=452954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=452954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}