Trump’s 100% Pharma Tariffs Won’t Apply to EU, Japan

President Donald Trump’s new 100% tariffs on pharmaceutical imports will not apply to countries that have trade agreements with the US covering drug provisions, offering relief to economies including the European Union (EU) and Japan, Skylar Woodhouse reported for Bloomberg News.

Products from companies that commit to building US plants would be exempt. (Photo: Maxwell Hamilton Wikimedia Commons) 

Duties on pharmaceuticals from the EU will be capped at 15% under its framework deal, a White House official said Friday.

Japanese drug exports will also be charged at their agreed rate. A US-Japan joint statement specifies that tariffs on Japanese pharmaceuticals and semiconductors cannot exceed those applied to the EU.

The UK, however, would face the full 100% tariff, as London has not yet finalized terms with Washington on drug exports despite having negotiated a broader trade deal.

Trump announced Thursday that the US would impose a 100% tariff on branded or patented pharmaceutical products unless a company builds production facilities in the US.

Products from companies that commit to building US plants would be exempt. The sudden announcement left some governments unsure whether their deals still applied, though US officials said implementation was already underway.

Earlier this week, the Trump administration also cut auto tariffs to 15%, down from 25% on top of existing duties.