Donald Trump confirms pharma tariff will be 15pc for EU as White House reveals fact sheet on trade deal
Trump's administration is doing a separate investigation of pharma imports to America, to assess if over-reliance on them is a threat to national security. The expectation is that the results of this investigation, expected next month, will lead to a hefty tariff on pharma. Trump has threatened a levy of up to 200pc, as he attempts to strong-arm US pharma companies to re-shore their manufacturing operations in America.
After the deal was struck on Sunday night, European Commission officials were insistent that no matter what global tariff was levelled on pharma, the EU would be covered by the 15pc regime.
In the fact sheet published today by the US, it is stated; 'As part of President Trump's strategy to establish balanced trade, the European Union will pay the United States a tariff rate of 15cp, including on autos and auto parts, pharmaceuticals, and semiconductors.'
The White House confirms that the EU will purchase $750 billion in US energy and make new investments of $600bn in America by 2028.
The fact sheet also claims that the 'colossal' trade deal will enable America farmers, fishermen and manufacturers to increase their sales to the EU, thereby reducing the trade deficit. It say the EU will remove all tariffs on US industrial goods that it imports, which creates 'enormous opportunities for American-made and American-grown goods to compete and win in Europe'.
It adds: 'This new market access will drive growth across the American economy—fuelling exports, expanding production, and allowing American businesses of all sizes to reach millions of new customers across the Atlantic.'
In terms of US food imports to Europe, the fact sheet says the two sides will work together to address non-tariff barriers – which would include certain food standards applied to beef and chicken – that affect trade. This would include 'streamlining requirements for sanitary certificates for US pork and dairy products'.
Barriers for digital trade will also be addressed, and the EU is said to have confirmed that it will not adopt usage fees.
Summarising the benefits of the deal from an American perspective, the fact sheet declares; 'This new tariff regime will generate tens of billions of dollars in revenue annually and help to close the longstanding trade imbalance between the United States and Europe by encouraging local sourcing, reshoring production, and ensuring that foreign producers contribute their fair share to the American economy.'
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