US-EU Trade Deal Imposes 15% Tariffs on European Pharmaceuticals

The United States and European Union have reached a trade agreement that will impose a 15% tariff on European pharmaceutical imports, marking a significant change as pharmaceuticals were traditionally exempt from such tariffs. This tariff is expected to raise pharmaceutical industry costs by an estimated $13 billion to $19 billion, potentially leading to higher drug prices for American consumers unless companies can mitigate the impact through strategies like stockpiling. The tariffs will take effect after the completion of a national security investigation under Section 232, which may also lead to additional tariffs on pharmaceuticals from other countries. European officials have expressed concern that these tariffs could harm investment, jobs, and tax revenue in the sector, particularly in manufacturing hubs like Ireland. The agreement and tariff details have seen some disagreement between President Trump and EU leaders, with Trump emphasizing the tariffs are separate from the main trade deal. Meanwhile, similar trade discussions between the US and the Philippines involve tariff adjustments that aim to balance market access and protect local industries.