USA and EU release details for tariffs, including on pharmaceuticals

The USA and European Union on Thursday released new details of their trade framework, addressing long-standing disputes and expectations around pharmaceutical and semiconductor tariffs.

Key points in the statement include the US committing to “apply the higher of either the US Most Favored Nation (MFN) tariff rate of 15%, comprised of the MFN tariff and a reciprocal tariff, on originated goods of the European Union. Generic pharmaceuticals will be exempt from the new agreement, meaning such drugs will face a roughly 2.5% tariff rate in place prior to the Trump administration.

The statement publicly firms up the details of the EU-US deal on tariffs struck by US President Donald Trump and European Commission president Ursula von der Leyen at the end of last month.