Medicines and semiconductors from EU countries should not get higher tariffs than 15 percent, announces the White House in its statement. A big difference compared to the sky-high tariffs of 250 percent for medicines that Donald Trump previously threatened with. Generic medicines – that is, those whose patent has expired – can get even lower tariffs, according to the statement, around 0 to 2 percent.
”Right direction”
It's a step in the right direction, and we welcome it, but the danger is not over, says Sofia Wallström, CEO of Lif, the industry organization for the research-based pharmaceutical companies, to TT.
That the tariff ends up at a maximum of 15 percent and not 250 for medicines is certainly a relief, but it's still a high tariff, she says.
Want to protect public opinion
A tariff of around zero percent for generic medicines is likely based on a desire from Trump to protect public opinion at home, believes Michael Koch, head of the Unit for Economic Analysis at the National Board of Trade.
This by favoring American consumers, who to a high degree use generic medicines, which are often cheaper than patent medicines, he says to TT.
The EU may also get lower tariffs for cars, according to a joint statement from the US and the EU where they clarify the framework for their tariff agreement. On condition that the EU removes tariffs on American cars, the US will lower the import tariffs for European car manufacturers to 15 percent. The US's current tariffs on European vehicles are 27.5 percent.
