EU-US Agreement Sets 15% Tariff Cap on Pharmaceuticals, Semiconductors

Ireland's Taoiseach Micheál Martin and Tánaiste Simon Harris have welcomed the confirmation of a 15% tariff ceiling on EU exports of pharmaceuticals, semiconductors, cars, and lumber to the US under a new EU-US trade agreement. This tariff cap, effective from September 1, protects Irish exporters from potentially higher tariffs that could have resulted from US Section 232 national security investigations initiated by President Donald Trump. The agreement includes zero tariffs on aircraft and aircraft parts, as well as other carve-outs, providing significant clarity and certainty for exporters in key Irish sectors, particularly pharmaceuticals and semiconductors. Both leaders described the deal as a significant win for the EU and emphasized its importance given the scale of these sectors in Ireland’s economy. They also indicated intentions to negotiate further carve-outs and reduce non-tariff barriers as part of a broader, more comprehensive future agreement. The statement was praised for offering a critical shield to Irish businesses and a foundation for expanded trade cooperation between the EU and the US.