The United States has agreed to limit tariffs on pharmaceuticals, lumber and semiconductors imported from the European Union to 15%, according to an agreement released Thursday.
President Donald Trump recently threatened the European pharmaceutical industry with tariffs as high as 250% and the region’s semiconductor industry with tariff rates as high as 100%.
The announcement comes as Trump’s global trade agenda takes shape weeks after his administration locked in tariff rates for imports from dozens of countries. Economists warn that the tariffs, a tax on goods paid by importing companies, are fueling persistent inflation. The Trump administration has touted tens of billions of dollars in revenue from the duties.
In a statement, European Commission President Ursula von der Leyen said, “Faced with a challenging situation, we have delivered for our Member States and industry, and restored clarity and coherence to transatlantic trade.”
The E.U. also stressed that “tariffs are paid by the company importing the imported goods.”
“In the end, it is usually the consumers (in this case, US consumers) who will indirectly pay for the tariffs.”
In the framework E.U. trade agreement, the United States said it plans to roll back tariffs on “unavailable natural resources (including cork), all aircraft and aircraft parts, generic pharmaceuticals and their ingredients and chemical precursors” to pre-January levels starting Sept. 1.
European Commissioner for Trade Maroš Šefčovič said “this framework is the first step, one that can grow over time” to include further exemptions.
One of the most important exemptions sought by the E.U. for the wine and spirits industry did not make it into Thursday’s agreement. Šefčovič said “unfortunately here we didn’t succeed,” but added that he would continue to discuss it with his American counterparts.
“These new higher tariffs on EU spirits products will further compound the challenges facing restaurants and bars nationwide,” Distilled Spirits Council President Chris Swonger said in a statement.
Commerce Secretary Howard Lutnick said in a post on X, “The America First Trade Agenda has secured the most important trading partner creating a major win for American workers, U.S. industries, and our national security.”
Ireland, an E.U. member state, is one of the top sources of pharmaceutical imports for the United States. The pre-January tariff rate on aircraft imports was zero. The European Union, as a whole, is the United States’ largest trading partner.
