Summary
The United States and the European Union have reached a trade agreement involving pharmaceuticals and semiconductors. Initially, there was a threat from President Trump to impose high tariffs of up to 250% on these goods, but that has been reduced to 15%. Other parts of the agreement include maintaining a 27.5% tariff on cars until the EU removes tariffs on U.S. industrial goods.
Key Facts
- The U.S. initially threatened to impose very high tariffs on EU pharmaceuticals and semiconductors.
- Under the new agreement, tariffs on these items will be lowered to 15%.
- The deal was first mentioned during Trump's meeting with European Commission President Ursula von der Leyen.
- The EU will lower tariffs to zero on all U.S. industrial goods, including some agricultural products.
- The 27.5% tariff on European car exports to the U.S. will remain until the EU lifts all tariffs on U.S. goods.
- This agreement provides stability and clarity for U.S.-EU trade relations.
- Ireland's Deputy Prime Minister welcomed the tariff reduction for pharmaceuticals, important for Irish exports.
- The new 15% tariff rate will apply to most European goods starting from 1 September.
