Harris says EU-US deal ‘made absolutely clear’ pharma tariffs capped at 15%

It was “made absolutely clear” that any new US tariffs on EU pharma exports would be capped at 15%, the Tanaiste has said, after President Donald Trump announced a new 100% tax on the goods.

The move, which comes as part of a suite of new measures to take effect on October 1, casts uncertainty over a previous framework agreement between the EU and the US.

Mr Trump said on the Truth Social website that the tariffs on brand-name and patented pharmaceuticals would not apply to companies that are building manufacturing plants in the United States, which he defined as either “breaking ground” or being “under construction”.

On August 21, the EU and the US issued a joint statement which outlined that the American administration would apply a 15% rate to pharmaceutical imports originating from the bloc.

They also said that the US would not impose a tariff in excess of 15% on pharmaceuticals after it conducted a “Section 232 investigation”, which examines the impact of imports on national security.

Following the overnight announcement of the new US tariffs, including on patented pharmaceuticals, Tanaiste Simon Harris said: “We will be studying the impact of this announcement, which includes a number of exemptions, together with EU colleagues.”

The Foreign Affairs and Trade Minister added: “I want to stress, however, that the EU and US Joint Statement issued on August 21 last made absolutely clear that any new tariffs announced by the US on pharmaceuticals under its Section 232 investigation would be capped at 15% for pharma products being exported by the EU.

“This remains the case and underlines again the value of the agreement reached last month.”

Meanwhile, the deputy chief spokesman for the European Commission struck a more certain tone on Friday morning.

Olof Gill said the announcement will not impact the European Union.

Speaking on RTE’s Today With Claire Byrne, he said: “It’s spelled out in black and white in the EU-US Joint Statement that we agreed last month, and it’s a clear commitment, so we’re sure.”

Asked if the EU had any contact with the US about the matter, Mr Gill said: “Of course we had.”

He added that EU trade commissioner Maros Sefcovic had discussed tariffs with US trade representative Jamieson Greer on Thursday.

Pressed on whether Mr Sefcovic was told the 100% rate would be for other regions, Mr Gill said: “I’m not exactly sure what the precise exchange was.”

On the same programme, EY life sciences expert Aidan Meagher welcomed the comments from the commission but said the pharma industry would need more confirmation from the US administration.

The uncertainty came after Mr Harris held a series of meetings in New York and Washington, including with US secretary of commerce Howard Lutnick.

A Government readout from the meeting with Mr Lutnick said it provided a “chance to take stock” on the EU-US framework.

It said they discussed the potential of expanding the list of goods that are exempt from the baseline 15% tariff rate, including Ireland’s particular interest in spirits and medical technology.

It added: “They also discussed the issue of non-tariff barriers as well as the ongoing Section 232 investigations on pharmaceuticals and semiconductors.”

In his own statement on Friday morning, Mr Harris said: “I remain as convinced as ever of the mutually beneficial nature of the dynamic, two-way economic partnership between Ireland and the US as well as between the EU and the US.”

Asked about the matter shortly after that statement was issued, Finance Minister Paschal Donohoe was unable to tell reporters if the 100% tariff had been raised in the meeting between his party leader and Mr Lutnick.