Harris says EU-US deal ‘made absolutely clear’ pharma tariffs capped at 15%
By Cillian Sherlock, PA
It was “made absolutely clear” that any new US tariffs on EU pharma exports would be capped at 15 per cent, the Tánaiste has said, after President Donald Trump announced a new 100 per cent tax on the goods.
The move, which comes as part of a suite of new measures to take effect on October 1st, casts uncertainty over a previous framework agreement between the EU and the US.
Mr Trump said on the Truth Social website that the tariffs on brand-name and patented pharmaceuticals would not apply to companies that are building manufacturing plants in the United States, which he defined as either “breaking ground” or being “under construction”.
I want to stress, however, that the EU and US Joint Statement issued on 21 August last made absolutely clear that any new tariffs announced by the US on pharmaceuticals under its Section 232 investigation would be capped at 15% for pharma products being exported by the EU
On August 21st, the EU and the US issued a joint statement which outlined that the American administration would apply a 15% rate to pharmaceutical imports originating from the bloc.
They also said that the US would not impose a tariff in excess of 15 per cent on pharmaceuticals after it conducted a “Section 232 investigation”, which examines the impact of imports on national security.
Following the overnight announcement of the new US tariffs, including on patented pharmaceuticals, Tánaiste Simon Harris said: “We will be studying the impact of this announcement, which includes a number of exemptions, together with EU colleagues.”
The Foreign Affairs and Trade Minister added: “I want to stress, however, that the EU and US Joint Statement issued on August 21 last made absolutely clear that any new tariffs announced by the US on pharmaceuticals under its Section 232 investigation would be capped at 15 per cent for pharma products being exported by the EU.
“This remains the case and underlines again the value of the agreement reached last month.
“Returning home after a series of valuable meetings in both New York and Washington, where I met with US secretary of commerce Howard Lutnick, I remain as convinced as ever of the mutually beneficial nature of the dynamic, two-way economic partnership between Ireland and the US as well as between the EU and the US.”
A Government readout from the meeting with Mr Lutnick said it provided a “chance to take stock” on the EU-US framework.
It said they discussed the potential of expanding the list of goods that are exempt from the baseline 15 per cent tariff rate, including Ireland’s particular interest in spirits and medical technology.
It added: “They also discussed the issue of non-tariff barriers as well as the ongoing Section 232 investigations on pharmaceuticals and semiconductors.”
