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Trump’s 100% pharmaceutical tariffs won’t apply to Japan and EU

U.S. President Donald Trump’s new tariffs on pharmaceutical imports will not apply to countries with negotiated agreements with the U.S. that contain provisions on drugs, according to a White House official, delivering promised relief to economies including the European Union and Japan.
Duties on pharmaceuticals from the EU will be capped at 15% per the terms of its framework deal, the official said Friday. Japanese drugs will also be charged the rate spelled out in its pact, the official added. The U.S.-Japan joint statement says American tariff rates on Japanese drugs and semiconductors should not exceed those applied to others, including the EU.

The U.K., another country that exports pharmaceuticals to the U.S., would face the 100% tariff, according to a White House official. London also negotiated a trade agreement with Washington that included provisions for similar exemptions, but the two countries have not yet agreed on a rate for pharmaceuticals.

Trump said Thursday that the U.S. would impose a 100% tariff “on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” defined as “breaking ground and/or under construction.” No tariff will apply “if construction has started,” the president posted on social media.

The abrupt announcement included no other details, leaving some overseas capitals wondering if their deals with Washington still applied to the new pharmaceutical tariffs. If a company announces they will build a plant in the U.S., then their products would be exempt while the Commerce Department vets the announcement and conducts an approval process, the official said.

Japan exported ¥411 billion ($2.7 billion) of pharmaceutical products to the United States in 2024, making up 1.9% of its total exports to the country, according to Finance Ministry data.

The Trump administration has taken other steps recently to implement the EU trade understanding. Earlier this week, the U.S. slashed auto tariffs to 15%, down from 25% on top of existing rates.

A White House official also said Friday that an additional 25% U.S. tariff on heavy trucks and parts will apply to imports from Japan.

Trump said in a social media post Thursday that he will impose a 25% tariff on heavy trucks imported into the country, effective on Wednesday. Japanese heavy trucks and parts will face a 50% U.S. tariff, including a 25% levy that has already been in place.

The impact of the increased tariffs is uncertain as heavy trucks represent a small portion of Japanese exports to the United States.

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