Thu, 21 Aug 2025

Thu, 21 Aug 2025 Trump backs down from 250% EU pharma tariff in deal

The US and EU have released details of the new trade deal reducing tariffs between the two partners.

* US President Donald Trump has backed down from setting high tariffs on pharmaceuticals and semiconductors imported from the European Union.
* Tariffs on these products will be limited to 15% in line with most other sectors in the trade deal, instead of the original threat of 250% and 100%.
* The EU will first have to pass legislation reducing US export tariffs to zero before getting the 27.5% tariff on car exports reduced to 15%.
* The joint statement from the US and EU says this is a "first step in a process" that could be expanded as their relationship develops.
* Ireland's Deputy Prime Minister Simon Harris welcomed the assurance that pharmaceuticals and semiconductors will be included under the 15% tariff rate.
* The new trade deal comes into effect on September 1, with the US applying a 15% tariff rate on most European goods, including semiconductor and lumber exports.
* In return, the EU will reduce tariffs to zero on all US industrial goods, including agricultural products such as fresh fruit and vegetables.
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