The week in summary
Proposed Pharmaceutical Tariffs Announced
On 26 September, President Donald Trump announced via Truth Social, a sweeping new tariff policy targeting pharmaceutical imports into the US:
“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America. “IS BUILDING” will be defined as, “breaking ground” and/or “under construction.” There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started.”
The key points from the announcement are:
Although the 1 October date has passed, there has yet to be an Executive Order or Presidential Proclamation setting out the specific details in respect of how this new tariff measure will be implemented. However, as reported across multiple new outlets on Monday, the announcement of this increased tariff has seen some large pharmaceutical producers, most notably Pfizer, announce a reduction in prescription drug prices for US consumers and a commitment to invest additional financial resources in US manufacturing, research and development to avoid the additional tariffs.
White House Confirm 15% EU tariff
According to White House officials, President Trump’s proposed plan to implement 100% tariffs on certain pharmaceutical products will not affect countries with existing trade agreements. When asked about the implications for trading partners like the European Union and Japan, the official confirmed that the administration would uphold the 15% tariff cap outlined in these agreements.
The announcement, which came ahead of the tariffs due to take effect on October 1st, reassured the EU that its July trade deal with the US protects its pharmaceutical exports from tariffs exceeding 15%. Brussels highlighted the agreement, wherein Washington committed to capping tariffs on pharmaceuticals, semiconductors, and lumber at 15%. EU commission deputy chief spokesperson, Olaf Gill, stated on RTÉ Radio: