Brussels/Washington – August 2,(HS) : US President Donald Trump has backed down from imposing punitive tariffs of up to 250% on European pharmaceuticals and 100% on semiconductors, easing months of transatlantic trade tensions. Under a deal confirmed Thursday, those sectors will face a 15% tariff instead — in line with most EU exports covered by the new US-EU agreement.
The arrangement, first brokered between Trump and European Commission President Ursula von der Leyen in Scotland last month, slashes average tariffs on European goods while requiring the EU to pass legislation eliminating tariffs on US industrial and agricultural exports. Only then will Washington cut its 27.5% duty on European motor vehicles to 15%.
Ireland, one of the largest pharmaceutical exporters to the US, welcomed the compromise, which shields major companies such as Denmark’s Novo Nordisk from crippling rates. EU Trade Commissioner Maros Sefcovic said Brussels aimed to move swiftly on legislative changes so that retroactive reductions on car tariffs could apply as early as this month.
Von der Leyen hailed the deal as providing “predictability” and stability for businesses amid fears of a tariff war, while Trump’s Commerce Secretary Howard Lutnick called it a “historic win” for US industry under the “America First Trade Agenda.”
Still, both sides acknowledged disappointment that wine and spirits had been left out of the exemptions. French exporters and US distillers warned that new burdens on the sector would deepen pressures already facing restaurants and bars.
The agreement, to take effect September 1, marks a significant de-escalation after Trump threatened blanket tariffs as high as 30% on all European imports earlier this year. Yet businesses on both sides remain cautious, calling the pact a first step in a still fragile, politically charged trade alignment.
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Hindusthan Samachar / Jun Sarkar
