Trump Locks in 15% Pharmaceutical Tariff Rate for EU, Generic Drugs Exempted

The U.S. finalized a trade agreement imposing a 15% tariff on European pharmaceuticals, capping months of negotiations between the Trump administration and the European Union.135

Generic drugs imported from the EU are exempt from the 15% tariff, though details on the specific drugs covered remain limited at this time.34

The 15% tariff rate applies only to brand-name pharmaceuticals and is lower than the 200% tariff previously threatened by President Trump.24

This tariff cap covers other goods, including European cars and semiconductors, as part of a broader effort to avoid a wider transatlantic trade war and rebalance economic relations between the U.S. and EU.15

Major pharmaceutical products affected by the tariff include top-selling branded drugs manufactured in Europe and exported to the U.S., such as Humira, Keytruda, and Ozempic.2

The agreement is characterized as a 'framework,' representing an initial step rather than a finalized, comprehensive trade deal. Legislative action may be required for further details.15

European Commission President Ursula von der Leyen emphasized that the 15% rate is an all-inclusive ceiling with no further stacking of duties.2

The new tariff regime is expected to have a substantial financial impact on the pharmaceutical industry, with analyst estimates of up to $19 billion depending on company strategies and existing contracts.4

Sources:

1. https://www.cbsnews.com/news/us-eu-trade-deal-tariffs-trump/

2. https://www.pharmaceutical-technology.com/news/us-instils-15-tariff-rate-on-eu-for-pharmaceutical-products/

3. https://www.fiercepharma.com/manufacturing/trump-locks-15-tariff-rate-europe-confirming-separate-most-favored-nation-duty

4. https://www.emarketer.com/content/drugs-coming-eu-will-face-15--tariff

5. https://www.politico.eu/article/us-cap-tariffs-eu-pharma-car-semiconductor-15-percent/