EU and Japan Secure Sweeping Tariff Limits Amid U.S. Trade Tensions

The European Union and Japan expressed optimism on Friday about establishing a cap on U.S. tariffs concerning pharmaceuticals. President Donald Trump had previously stated a plan to impose a 100% tariff rate next week, but a recent U.S.-EU trade deal promises a maximum limit of 15% for pharmaceuticals, semiconductors, and lumber.

A spokesperson for the European Commission described the 15% tariff ceiling as an assurance preventing higher tariffs on European exports. European Trade Commissioner Maros Sefcovic mentioned confidence in the United States' commitment, referencing prior reductions in car tariffs. Meanwhile, Japan pointed to its agreement with Washington, expecting similar treatment.

Amid Trump's tariff declarations, stakeholders in the pharmaceutical sector, such as European and Swiss drugmakers, are wary yet hopeful. With looming demands to slash U.S. drug prices, pharmaceutical giants like Novo Nordisk and Roche strategize around existing investments to potentially mitigate elevated tariffs.

(With inputs from agencies.)