US confirms 15% tariff for EU includes pharmaceuticals

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US confirms 15% tariff for EU includes pharmaceuticals
The 15% tariff is confirmed in a fact sheet published by the White House

The White House has confirmed that the 15% tariff agreed between the European Union and the United States includes pharmaceuticals and semiconductors.

There had been some confusion over whether or not the products were covered by the trade deal after President Donald Trump said on Sunday that pharma was not included.

European Commission President Ursula von der Leyen later indicated that the 15% levy would also apply to the pharmaceutical sector.

Pharmaceuticals are the largest Irish export to the US, valued at €44 billion last year.

A fact sheet, published by the White House, states that the rate agreed as part of the trade deal includes pharma as well as semiconductors.

“As part of President Trump’s strategy to establish balanced trade, the European Union will pay the United States a tariff rate of 15%, including on autos and auto parts, pharmaceuticals and semiconductors,” it said.

President Trump has ordered a national security inquiry into the pharma sector, known as a Section 232 investigation.

Tánaiste and Minister for Foreign Affairs and Trade Simon Harris said on Sunday that it was his understanding that after the probe concludes, the maximum tariff that could be imposed would be 15%.

The White House fact sheet said the sectoral tariffs on steel, aluminum and copper will “remain unchanged”.

“The EU will continue to pay 50% and the parties will discuss securing supply chains for these products.”

The agreement is described as a “colossal deal” and one that will achieve “historic structural reforms and strategic commitments”.

The fact sheet also outlines that the EU will “remove significant tariffs, including the elimination of all EU tariffs on US industrial goods exported to the EU”.

Agreement will stabilise transatlantic trade, says EU

The agreement will secure, stabilise and grow transatlantic trade and investment relations, according to the European Commission’s spokesperson on trade.

Olof Gill said that both sides are “working very hard” to get the details of the accord signed.

Speaking on RTÉ’s Morning Ireland, he said the 15% tariff was not the outcome that the EU or the US wanted, but “what we have now is something that gives us stability. It gives us clarity. It gives us predictability, which is what businesses want above all”.

Mr Gill said the tariff “should kick in fairly soon” but could not give a precise date.

In relation to agriculture and the fact that Northern Ireland and the Republic have two different tariffs applied to their goods, details “can be worked out, he said.

“We’re not at the end of the process here, at the start of the process.”

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Minister for Enterprise, Tourism and Employment Peter Burke has updated the Cabinet on details of the EU-US agreement.

He outlined some of the exclusions that Ireland had campaigned for as part of the negotiations, including a zero-for zero-arrangement on aviation.

Mr Burke also set out the supports that are available from Enterprise Ireland for businesses impacted by the 15% tariff.

These include a new market research grant of up to €35,000.

It will be available from next month to companies to assess the impact of trade measures and to develop stategies that will address pricing, supply chain and cost challenges.

Trade Forum to meet on EU-US deal

Minister Simon Harris is to convene a meeting of the Government Trade Forum on Friday to provide an update on the EU-US agreement.

It will also provide an opportunity for the Tánaiste to hear from stakeholders.

The forum is comprised of State agencies, business groups, unions and senior ministers.

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Mr Harris said: “As we continue to analyse the full implications of the deal over the coming days, the Trade Forum meeting on Friday will be a timely opportunity to share and gain insights on what this deal will mean for the future of Irish businesses, jobs, and the economy.

“Whilst the agreement between the EU and the US is welcome, we know that the imposition of any tariffs will have implications and that now is the time to intensify efforts to find and secure more markets for Irish businesses and Irish jobs.”

The Tánaiste is also set to update the forum on other issues including plans to accelerate the passage of the Arbitration (Amendment) Bill 2025, which will allow for the ratification of the EU-Canada trade deal, known as CETA.

It follows the Oireachtas Committee on Foreign Affairs and Trade’s decision to waive pre-legislative scrutiny of the bill following a request from the minister.

An update will also be provided on the decision to defer the implementation of alcohol labelling following concerns raised at the trade forum around the potential of the move to impact competitiveness.