Trump’s Pharmaceutical Tariffs Materialize in New US-EU Trade Deal

The new US-EU trade agreement announced on July 27, 2025, introduces a 15% tariff on pharmaceutical imports from the EU to the US as part of President Trump's ongoing tariff strategy123.

Tariffs on pharmaceuticals are set at 15% but their implementation is contingent on the results of an ongoing 'Section 232' national security investigation into the security implications of relying on foreign-made pharmaceuticals1.

Previously, the EU faced the threat of a higher, 30% tariff; the 15% rate is a compromise, though higher than the universal US import rate of 10%2.

European Commission President Ursula von der Leyen asserted that pharmaceuticals are covered by the agreement, despite President Trump suggesting otherwise in public remarks, signaling some disagreement on the deal’s specifics1.

In return for the lower-than-threatened tariffs, the EU agreed to purchase $750 billion in US energy products over three years and invest $600 billion in the US economy25.

About 70% of EU products exported to the US will now face this 15% tariff, replacing prior zero-tariff policies, while the EU largely maintains a 0% tariff on American imports4.

Details of how the pharmaceutical tariffs will be implemented and whether they could rise for non-EU countries remain unclear, pending completion of the US investigation1.

Sources:

1. https://www.statnews.com/2025/07/28/pharmaceutical-tariffs-european-union-trade-deal-15-section-232-investigation/

2. https://abcnews.go.com/Business/trumps-trade-agreement-european-union/story?id=124131754

3. https://ec.europa.eu/commission/presscorner/detail/en/qanda251930

4. https://www.youtube.com/watch?v=pgV9CYON1mE

5. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-united-states-and-european-union-reach-massive-trade-deal/