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

Tanaiste Simon Harris has welcomed confirmation from the White House that EU pharma exports remain at 15%, 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, had cast uncertainty over a previous agreement between the EU and the US which placed a 15% cap on pharma tariffs.

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, Mr Harris initially said he would be studying the impact of this announcement.

He issued a statement later on Friday: “I welcome confirmation from White House officials this evening that the new tariffs outlined by President Trump in relation to pharma overnight will not apply to the EU, including Ireland, as a result of the EU-US framework agreement.

“This is further proof of the benefit of having a negotiated trade agreement and the benefits of the very intensive work that we in Ireland and at a European Union level undertook over many months with the US administration to ensure this trade deal is in place.

“I intend to continue to intensively engage both with the EU and with the US administration, as I have been in recent days in New York and Washington DC, to seek further progress on the removal of trade barriers between the EU and the US in the time ahead.”

Earlier on Friday, the deputy chief spokesman for the European Commission Olof Gill was certain Mr Trump’s announcement would 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.