EU Japan Secure 15% Cap on US Pharma Tariffs Protecting Exports

The European Union has secured a trade agreement with the United States that caps tariffs on EU pharmaceutical exports at 15%, despite President Donald Trump's announcement of imposing 100% tariffs on branded or patented drugs unless companies build manufacturing plants in the U.S. This cap, part of a broader July deal covering pharmaceuticals, semiconductors, and lumber, serves as an insurance policy to protect European exporters from higher tariffs. The EU is the only trade partner to achieve such a tariff ceiling with the U.S., and Japan has obtained a similar agreement ensuring its tariffs will not exceed those applied to the EU. European officials, including Ireland's Tánaiste, emphasized the importance of this cap and are studying the impact of Trump's announcement, which includes exemptions for companies investing in U.S. manufacturing. Brussels continues to engage with Washington to implement the joint commitments and seek additional tariff exemptions, while also working on reducing tariffs on other goods like wine. The agreement also reduced U.S. tariffs on EU auto imports to 15%, signaling ongoing efforts toward broader trade cooperation.