TARIFFS ON IMPORTED pharmaceuticals into the US could go as high as 250%, President Donald Trump has said.

Pharmaceuticals and semiconductors will be the next industries targeted in the latest round of Trump’s tariffs, he outlined today, despite the EU claiming that it had agreed a 15% tariff cap on medicines.

Speaking to CNBC this morning, Trump referenced Ireland’s strength in the pharmaceuticals sector, and indicated that new tariffs on imported pharmaceuticals and semiconductors will be announced soon – potentially in the coming week.

He said that other countries “make a fortune with pharmaceuticals”,

“They make our pharmaceuticals in China and Ireland,” he said, adding that upcoming tariffs on imported pharmaceuticals could reach 250%.

“We’ll be putting [an] initially small tariff on pharmaceuticals, but in one year, one-and-a-half years, maximum, it’s going to go to 150%, and then it’s going to go to 250% because we want pharmaceuticals made in our country,” he said.

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’15% cap is all-inclusive’

Trump and European Commission President Ursula von der Leyen agreed a deal two weeks ago to a baseline US tariff of 15% on imports from the EU. It left out some sectors, though, including pharmaceuticals.

Today, the European Commission pushed back on criticism from members of the German government that von der Leyen had not secured a good deal for businesses and citizens in the EU.

Similar criticism was levelled in a recent episode of The Journal‘s The Explainer podcast, when economist and TU Dublin lecturer Emma Howard said Trump successfully ‘anchored’ his negotiations with the EU, which saw Europe talk him down from a proposed and unrealistic 30% tariff rate.

Trade spokesperson Olof Gill stood over the agreement between the Commission President and Trump, claiming the deal secured a future without further tariffs and assured that the 15% tariff ceiling on goods “is all-inclusive”.

He said that the deal allows the EU and the US to have a “stable platform” to move towards a zero-for-zero tariff scenario, secure future trade deals with Washington and provide certainty to businesses.

His comments came after he confirmed that the European Commission today waived Europe’s proposed counter tariffs against the US – despite previous claims from the EU’s executive that it would move forward with reciprocal measures should tariffs be imposed.

Future of tariffs on pharma

Uncertainty remains, however, for the pharma industry – a lucrative sector for Ireland. In April, the Trump White House initiated new investigations into the imports of pharmaceuticals under Section 232 of the Trade Expansion Act.

The purpose of a Section 232 investigation is to determine, in short, the effect of imports on US national security and whether certain imports “threaten to impair” national security.

Its outcome will determine if placing tariffs on goods such as medicines, which the US largely imports, threatens the security of the American job market, economic growth or foreign direct investment, monetary or otherwise.

Trump’s plans have incited concerns overseas, as governments that expect to be hit the most try to appease him to avoid high tariff rates.Switzerland’s leaders are due to travel to Washington DC today for talks to try to swerve a 39% tariff due Thursday.

Similarly to Ireland, pharmaceuticals represent a large majority (60%) of Swiss goods that are exported to the US.

On Wall Street, stocks were down as the anticipated tariff hikes create uncertainties in the world of business.