Pharmaceutical products spared from Trump’s tariffs for now
Ireland exports almost €60bn in pharmaceuticals to the US each year.
Pharmaceutical products will be spared from sweeping tariffs on major US trade partners for now, a small victory for drug companies who have been lobbying for an exemption from levies.
President Donald Trump on Wednesday announced the reciprocal tariffs on more than 60 countries, including members of the European Union and Switzerland. Trump has in the past said tariffs specifically targeting the pharmaceutical industry would come “soon.” He has specifically pointed to Ireland as one of the biggest exporters of drugs into the US.
The Irish Government and pharmaceutical industry here had feared the impact direct tariffs on pharmaceuticals would have given the sector's dominant role in the Irish economy and exports of almost €60bn to the US each year.
However, drugs and other products, including some already subject to other tariffs, aren’t subject to the new levies, according to a fact sheet released by the White House. The pharmaceutical industry may be subject to other tariffs in the future, however.
Last week, the Tánaiste Simon Harris brought a memo to the cabinet warning that Irish pharmaceutical exports could be halved if a 20% tariff was imposed on the sector.
“We are going to produce the cars and ships, chips, airplanes, minerals and medicines that we need right here in America,” Trump said when announcing the new tariffs. “The pharmaceutical companies are going to come roaring back, they are coming roaring back, they are all coming back to our country because if they don’t they got a big tax to pay. And if they do, I’ll be very happy.”
Additional reporting Bloomberg
