EU, Japan express confidence in capped US tariffs on drugs

The European Union and Japan expressed confidence on Friday that they had secured limits on U.S. tariffs on pharmaceuticals, which President Donald Trump said he would impose next week at a rate of 100%.

The European Commission referred to a joint statement agreed with the United States following its end-July trade deal, which states that the tariff for pharmaceuticals, semiconductors and lumber would not exceed 15%.

"This clear all-inclusive 15% tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators. The EU is the only trade partner to achieve this outcome with the US," a Commission spokesperson said.

Japan also referred to its joint statement with Washington, which said that U.S. tariff rates on Japanese semiconductors and pharmaceuticals would not exceed those applied to others such as the European Union.

In a post on Truth Social on Thursday, Trump announced a fresh round of tariffs that also covered trucks at 25% and furniture at 30-50%.

Trump said the pharmaceutical tariff of 100% would apply to branded or patented drugs unless a given pharmaceutical company is building a manufacturing plant in the United States.

Swiss company Roche said on Friday that one of its U.S. units has recently broken ground on a new facility.

Swiss rival Novartis, which also made a large U.S. investment pledge earlier this year, did not immediately reply to a request for comment.

An industry source estimated that, based on the initial U.S. indications, the tariffs as outlined by Trump on Thursday would probably not apply to the two Swiss companies.