U.S. and EU spell out tariffs for autos, pharmaceuticals, and more
US President Donald Trump announced a trade agreement with the EU at the Trump Turnberry Golf Club in Turnberry, Scotland on July 27, 2025, while the European Commission Ursula von Der Lenyen shaking hands. WE
Andrew Harnik | Getty Images News | Getty Images
On Thursday, the United States and the European Union revealed new details about trade frames, including hot and expected drugs and semiconductor tariffs.
After a week of heated negotiation, Brussels and Washington finally reached a trade agreement at the end of last month, and 15% blanket tariffs in EU exports to the United States, the EU also undertakes to buy US energy of $ 750 billion and invest at least $ 600 billion in the United States.
At that time, many political and business leaders in Europe expressed their concerns that the agreement was unstable. US President Donald Trump has hit the sectoral tasks for some goods, including which tariff ratio to be applied, various questions remained unanswered.
The statement on Thursday, at a time when many other trading partners are still waiting and negotiated, more details, for similar clarity in their trade agreements with the USA
Timber, technology and arrangement
The key points in the expression commit that the US committed to commit to committing “the US’s most preferred nation (MFN) tariff ratio or a 15 percent tariff ratio and a mfn tariff and a mutual tariff, on originating goods of the European Union”.
As of September 1, the US will apply only MFN duties for a few goods from the EU, including non -existing natural resources (including fungal), all aircraft and aircraft parts, generic drugs and their materials and chemical pioneers.
A few so -called chapters 232 tariffs are limited to a wider tariff ratio.– According to a senior US administration official, timber, semiconductors and drugs. This is below 100%, as well as the rates Trump sometimes threatened. Tax on semiconductors.
In the meantime, the EU said that the EU plans to “eliminate tariffs on all US industrial goods and provide preferential market access for a wide range of US seafood and agricultural goods”. This has already been handled in a wide range.
In the statement, the EU also contained insights on energy purchasing and investment commitments that ask questions about potential repercussions if the EU had not previously had feasibility and commitments.
The latest announcement reiterated the figures for the expenses planned from the EU, including AI chips in the US, energy and wider investments, but described them as expected and expected rather than guaranteed commitments.
In a statement on Thursday, even if Europe committed to enlarge its own defense capabilities, the EU’s procurement of US military and defense equipment “to a large extent” plans to increase plans.
In particular, the last agreement does not make changes to the EU’s Digital Services Law, which has regulations for major technology companies and has long been a point of debate in trade talks for Trump.
Farma
Europe’s pharmaceutical sector – the best source of the US for drug imports – will see that tariffs are limited up to 15%. Critically, the ratio will not collapse on other EU -diameter tariffs.
As of September 1, the Trump administration agreed to apply MFN drug pricing policy to general drugs. Directive aims to reduce US drug prices by linking them to lower prices paid by other developed countries.
In April, Trump administration 232. Investigation on pharmaceutical products to examine the impact of imports on national security. In recent weeks, Trump threatened up to 250% of the pharmaceutical industry and sent an ultimatom to large companies that demanded to reduce the US drug prices.
The White House leader has long been calling the sector to carry production operations in the state to support domestic production because of what the sector calls “abusive” pricing practices.
This has launched a pricing adjustments from Novo Nordisk and Eli Lilly in recent months, including Novartis, Astrazeneca and Roche.
Car
The United States and the EU said on Thursday that they have accepted a 15% tariff for European cars and automobile parts for the US – but according to a senior administrative authority, only after bringing legislation to reduce Brussels industrial tasks.
The authority added that only the promotion of EU legislation to reduce the ratio of industrial tariffs would be enough to start this change.
“The US and the European Union plans to accept each other’s standards and to respond to each other’s standards,” the US and the EU, the US and the EU, said in a joint statement on Thursday. He said.
In accordance with the conditions of the trade framework in late July, the EU said it would eliminate the “already low” tasks on industrial goods from the United States.
Speaking at the end of last month, Trump greeted the initially announced framework agreement as the biggest trade agreement so far and an agreement that promises “great for cars.”
The possibility of a 15% tariff rate in automobiles and automobile parts represents a significant decrease in the US President’s 30% accusation. In addition, it reduces the existing tariff rate in Europe’s automobile industry from 27.5%to almost half.
Industrial groups had previously worried about costs associated with tariff reality.
The German Automotive Industry Association (VDA), representing more than 620 companies in the German automobile industry, warned that a 15% tariff for US automobile products “will cost billions of German automotive companies annually and bring a burden in the midst of transformations”.
