EU aims to place limits on potential tariffs on pharmaceutical products within a US trade agreement
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The ongoing tariff negotiations between the European Union (EU) and the United States (US) under President Trump's administration have seen progress in several sectors, but pharmaceutical products appear to have been left untouched.
According to the latest developments, both sides have agreed on a proposed tariff of 15% for most goods sold to each other. However, this agreement does not seem to extend to pharmaceuticals.
The EU has been pushing for tariffs on pharmaceutical products sold to the US to be capped at a rate of 15%, mirroring its stance on cars. Yet, there is no specific mention of a targeted tariff rate imposed or proposed on pharmaceuticals exported from the EU to the US.
Similarly, the US has not singled out pharmaceuticals in its tariffs on EU imports. The current tariffs, which have been in place since early April, stand at 10% for most goods, with higher rates of 25% on imports of cars and 50% on steel and aluminium. However, several European industries, including aircraft, spirits, and some medical devices, are believed to be exempt from US tariffs.
Negotiators for the Trump administration have expressed a desire to handle potential trade levies on pharmaceuticals separately. This could suggest that the pharmaceutical sector may not be subject to the same tariff rates as other industries.
The lack of direct reference to pharmaceutical tariffs in the ongoing negotiations or retaliatory measures indicates that pharmaceutical products from the EU to the US are not currently subject to a proposed specific tariff rate in these negotiations.
The EU is keen to agree on a bare-bones trade agreement with the US to avoid higher tariffs. The talks between the two parties could take another twist in the coming days, and it remains to be seen whether pharmaceutical tariffs will be addressed in future negotiations.
European leaders have consistently expressed a preference for negotiating and solving issues through dialogue to avoid a trade war. Any negotiated agreement would be subject to a final sign-off by President Trump.
In conclusion, as of July 2021, there is no publicly disclosed or reported specific proposed tariff rate on pharmaceuticals in the EU-US trade negotiations with the Trump administration.
- The ongoing negotiations in EU-US trade, under the Trump administration, have not seen a proposed tariff for pharmaceutical products, despite progress in other business sectors, such as finance and industry.
- In the unfolding discussions of EU-US trade, it appears that both politics and general-news outlets have yet to report any specific proposed tariff rates for finance, business, or politics, like cars or steel, but have not focused on tariffs for pharmaceuticals either.
