Trump backs away from tariff threats against the EU on pharmaceuticals

Stockholm – The President of the USA Donald Trump is backing away from his earlier threats of imposing even higher tariffs on, among other things, pharmaceuticals, according to a statement from the White House.

Pharmaceuticals and semiconductors from EU countries will not face tariffs higher than 15 percent – a significant difference compared to the 250 percent for pharmaceuticals that Trump had previously threatened. Generic drugs may face even lower tariffs, according to the statement, around 0 to 2 percent.

“It’s a step in the right direction, and we welcome it, but the danger is not over,” says Sofia Wallström, CEO of Lif, the Swedish industry organization for research-based pharmaceutical companies, to TT.

“That the tariff rate is set at a maximum of 15 percent and not 250 for pharmaceuticals is indeed a relief, but it is still a high tariff rate,” she says.

The EU may also receive lower tariffs for cars, according to a joint statement from the USA and the EU. On the condition that the EU removes tariffs on American cars, the USA will lower import tariffs for European car manufacturers to 15 percent. The current tariffs imposed by the USA on European vehicles are at 27.5 percent.

(August 21)