Donald Trump backs down from 250% EU pharma tariff in deal

US President Donald Trump fell into the fixing of high prices on pharmaceutical products and semiconductors imported from the European Union.

Last month, Trump said that pharmaceutical and semiconductors were not covered by the United States and the handshake-which means that these sectors could have faced prices of 250% and 100% respectively.

But according to new details published on the US US Agreement Thursday, the EU pharmaceutical and semiconductor prices will be limited to 15% in accordance with most other sectors of the Trade Agreement.

However, the EU will first have to adopt legislation reducing US export prices to zero in order to obtain 27.5% prices on car exports to 15%.

In a joint statement on the agreement, the United States and the EU said it was a “first step in a process” that could be extended as the relationship develops.

The trade agreement was announced for the first time at a meeting between Trump and the president of the European Commission Ursula von der Leyen in Scotland last month.

They agreed to reduce prices on most EU exports to 15%, half of the rate originally originally by Trump but higher than the price of 10% guaranteed by the United Kingdom.

At the time, Von Der Leyen described it as a “framework” agreement with the details to be developed in the following weeks.

But subsequent threats of higher prices on pharmaceutical and semiconductor exports to the United States have increased fears that these products are excluded from the agreement.

In July, Trump threatened to raise 200%pharmacist prices, but speaking on CNBC on August 5, Trump said they could possibly go up to 250%.

“We want pharmaceutical products to our country,” he told CNBC.

The Member State of EU Ireland is a major pharmaceutical exporter in the United States, just like other European nations: the manufacturer of Ozempic Novo Nordisk is also based in Europe, whose head office is based in Denmark.

On Thursday, Irish Deputy Prime Minister and Minister of Foreign Affairs, Simon Harris, praised the assurance that the 15% rate will include pharmaceutical and semiconductor products.

“This provides an important shield for Irish exporters who could have been subjected to much greater prices,” he said. “Our intention is now to see which other sculptures can be made in areas of interest for Irish exporters.”

According to the joint agreement, the United States will apply the new rate of 15% on most European goods, including European exports of semiconductors and wood, from September 1.

In return, the EU will be reduced to zero prices on “all American industrial goods”, including agricultural products such as fresh fruits and vegetables, pork, bison meat and trees.

It is only once Europe removes prices on American exports – a decision that requires legislation – that the White House will reduce the tariff by 27.5% on European exports of 15% motor vehicles, the agreement said.

EU’s commerce commissioner Maros Sefcovic said at a press conference that the agreement indicates that the 15% tariff on cars is applied retroactively from the start of the month when the legislative process begins.

Sefcovic said it was the “firm intention” of the EU to start this process this month, and it had been reassured from the United States that the lower rate would then apply from August 1.

The president of the EU Commission, Ursula von der Leyen, said that the agreement offered predictability for companies and consumers of the block, as well as “stability in the largest commercial partnership in the world”.

“This EU-US trade agreement for our citizens and companies and strengthens transatlantic relations,” she said Thursday.

The US Secretary of Commerce Howard Lutnick said that the agreement “creates historic access to the vast European markets” for American producers.

“The America First sales program has obtained the most important trading partner creating a major victory for American workers, American industries and our national security,” he wrote on X.

“Prices should be one of America’s favorite words.”

The agreement comes after months of tariff threats and intense negotiations between the United States and the EU, after Trump announced for the first time in April that it would reach all European exports with a 30%rate.

However, there was a disappointment on both sides of the Atlantic that wine and spirits had failed to be exempt from the prices.

The French Federation of Wine Exporters, FEVS, said that it “would create major difficulties for the wine and spirits sector”.

Mr. Sefcovic said that with wine and minds, “unfortunately, we did not succeed”, although he added: “These doors are not closed forever.”

In the United States, the distilled council of spirits also said that it was disappointed by the agreement.

He said that without “permanent return to zero prices for zero on spirits”, the American distiller would not have the certainty of planning future growth, while the higher prices on EU spirits “would further worsen the challenges facing restaurants and bars” in the United States.