Written by The Banking Post
The European Union and Japan said Friday they were confident U.S. tariffs on pharmaceuticals would remain capped at 15%, despite President Donald Trump’s threat to impose a 100% duty next week.
Brussels pointed to a joint statement with Washington in July that set a ceiling of 15% on tariffs for medicines, semiconductors, and lumber. “This ceiling acts as an insurance policy against higher duties,” a Commission spokesperson said.
European Trade Commissioner Maros Sefcovic noted in Hanoi that Washington had already honoured commitments on car tariffs and expected the same for drugs. Japan also cited its agreement with the U.S., ensuring no higher rate than that applied to Europe.
Drugmakers, however, remain wary. A lobbyist for a major exporter said the threat of 100% duties was worrying but hoped the EU-U.S. deal would prevail. The EU pharma lobby EFPIA echoed that view while still pressing for exemptions.
Pharmaceutical trade is deeply intertwined across the Atlantic. EU exports of medicines to the U.S. reached €119.7 billion in 2024, with Ireland accounting for 37% of that total.
Some companies believe their U.S. investments will shield them. Roche and Novartis said they did not expect to be hit, citing new manufacturing sites in America. Novo Nordisk, which exports more active pharmaceutical ingredients from the U.S. than it imports, also expressed uncertainty but optimism.
Trump, meanwhile, has broadened his tariff campaign, announcing duties of 25% on trucks and 30–50% on furniture. He warned that branded or patented drugs would face 100% tariffs unless producers commit to building in the U.S. Drugmakers are now scrambling to cut cash prices before his September 29 deadline.
