The European Commission has confirmed this Friday that USA “has the intention to guarantee Without delay “that the tariff to European pharmaceutical products be subject to a 15% maximum tariffafter the president Donald Trump He has announced that he will impose a 100% tax at medication imports as of October 1.
Brussels and Washington closed a commercial agreement last August that left in a 15% maximum European exports tariff. The agreement referred to the tax called “reciprocal” that the United States has imposed on the products of all its commercial partners. But also to other sectors.
An insurance policy
Trump promised to apply the same tariff to some of the sectors in which his government had increased or planned to increase rates, claiming National Security issues. In particular, cars, Pharmaceutical and semiconductor products. Therefore, despite the president’s announcement, the commission trusts Maintain 15% for European pharmacists that export to the US.
The United States “intends to guarantee without delay that the tariff type” to which pharmaceutical products, wood and semiconductors will be subjected, “Do not exceed 15%”has assured Olof Gill, the spokesman for the commercial policy of the block. Gill has insisted that the pact reached with the White House “Represents an insurance policy” which guarantees that higher levies to European products are not applied.
Although Brussels has tried send a message of tranquility, Pharmacists are concerned about any scenario in which there is an increase in tariffs, reports Paula Clemente. “Tariffs on medicines, regardless of how excessive they may be, would create the worst possible scenario: They increase costs, interrupt supply chains and prevent patients from receiving vital treatments“said Friday the general director of the European Federation of Pharmaceutical Industries (EFPIA), Nathalie Moll.
Pending issues
It is not the first time that the pact is in the air. That 15% should also be applied to cars and car parts. The condition was that the European Commission should present A formal proposal to reduce tariffs to an extensive list of European products.
Brussels presented the proposal at the end of August. However, the executive order that made the Tariff reduction from 27.5% To which European vehicles were subjected, it only arrived last week. Although yes, it will have retroactive characterapplying since September 1. The same doubt now arises with the pharmaceutical products.
The other issue to be resolved is still What about steel and aluminum importswith some products subjected to a tariff of up to 50%. In the agreement, the United States and the EU said they will work To agree with quota with a low -gravamen. Both They share the analysis that the real problem is overcapacity in the market, of which the main person is China.
However, the agreement depends in part on What happens to the safeguards that the EU introduced in 2018 and has renewed until June next year. These measures limit the Amount of steel that can be imported to the EU without tariffs. The objective, given the situation in the global market, is to protect the sector.
In parallel, the negotiations continue. “The EU and the US They are still committed to the application of the commitments of the joint declarationwhile exploring new areas for the exemption of tariffs and broader cooperation, “Gill said. Among the sectors for which Brussels seeks 15% exemptions It is, for example, wine.
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