Harris says EU-US deal ‘made absolutely clear’ pharma tariffs capped at 15%
Donald Trump has announced further import tariffs (Leon Neal/PA)
It was “made absolutely clear” that any new US tariffs on EU pharma exports would be capped at 15%, the Tanaiste has said, after President Donald Trump announced a new 100% tax on the goods.
The move, which comes as part of a suite of new measures to take effect on October 1, casts uncertainty over a previous framework agreement between the EU and the US.
Other measures will include 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture and 25% on heavy trucks.
The posts on his social media site showed that Mr Trump’s devotion to tariffs did not end with the trade frameworks and import taxes that were launched in August, a reflection of the president’s confidence that taxes will help to reduce the government’s budget deficit while increasing domestic manufacturing.
“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America...” - President Donald J. Trump pic.twitter.com/z5EXQhw1xK
— The White House (@WhiteHouse) September 25, 2025
Ireland is a major supplier of pharmaceuticals to the US, exporting €33bn worth of products last year — more than a quarter of total EU pharmaceutical exports of €120bn.
The sector supports around 50,000 jobs in Ireland, with over half of those employed by US multinationals.
Following the overnight announcement of the new US tariffs, including on patented pharmaceuticals, Tánaiste Simon Harris said: “We will be studying the impact of this announcement, which includes a number of exemptions, together with EU colleagues.”
The Foreign Affairs and Trade Minister added: “I want to stress, however, that the EU and US Joint Statement issued on August 21 last made absolutely clear that any new tariffs announced by the US on pharmaceuticals under its Section 232 investigation would be capped at 15% for pharma products being exported by the EU.
“This remains the case and underlines again the value of the agreement reached last month.
“Returning home after a series of valuable meetings in both New York and Washington, where I met with US secretary of commerce Howard Lutnick, I remain as convinced as ever of the mutually beneficial nature of the dynamic, two-way economic partnership between Ireland and the US as well as between the EU and the US.”
Reacting to the overnight announcement from the White House, the Irish Pharmaceutical Health Association (IPHA) said it undermined the global trading environment.
"As we have previously stated, tariffs on medicines would be harmful. They would increase costs, disrupt global supply chains, undermine innovation, and ultimately harm patient access to life-enhancing medicines on both sides of the Atlantic," it told the Irish Examiner.
"The EU and US already have a trade agreement in place; urgent discussions are now needed on how to avoid any tariffs on medicines."
IPHA also noted that Ireland is a key player in strategic and secure global supply chains that provide medicines to patients in over 170 countries, operated by companies here from Asia, Europe and the United States.
"We urge all policymakers to support these secure supply chains and investment in innovative medicines that provide clear health, economic and societal benefits."
A Government readout from the meeting with Mr Lutnick said it provided a “chance to take stock” on the EU-US framework.
It said they discussed the potential of expanding the list of goods that are exempt from the baseline 15% tariff rate, including Ireland’s particular interest in spirits and medical technology.
It added: “They also discussed the issue of non-tariff barriers as well as the ongoing Section 232 investigations on pharmaceuticals and semiconductors.”
Speaking on RTÉ Radio’s , EU Commission Deputy Chief spokesperson Olaf Gill said the pharma tariffs will not impact the EU.
“We have a clear, all-inclusive 15% tariff ceiling arising from our deal with the US,” he said.
“We're the only trade partner to achieve this outcome with the US, and we look forward to that being implemented soon.
“It's spelled out in black and white in the EU-US Joint Statement that we agreed last month, and it's a clear commitment, so we're sure.”
He continued: “EU trade commissioner Maros Sefcovic met United States Representative Jemison Greer yesterday, and they discussed this and a number of other topics.
“Including, I should add the including, I should add the fact that earlier this week, the US implemented another of their commitments from the EU-US Joint Statement, which was to bring in certain exemption categories, notably for car exports from the EU to the US.
“That shows that the US is implementing its commitments, and they will now do the same with the same with the pharma.”
Mr Gill was repeatedly asked if the EU had specific guarantees since the US announced the tariffs but insisted that it “was in black and white”.
He added: “We don't know right now if this social media post by President Trump reflects the end of the 232 investigation or not, but we don't need to concern ourselves with that, because we know that the 15% tariff will capture our farm exports.
“That question should be directed to President Trump, or you can ask Mattress Mick when he is on in a few minutes.”
The additional tariffs risk intensifying inflation that is already elevated, as well as slowing economic growth, as employers getting used to Mr Trump’s previous import taxes grapple with new levels of uncertainty.
Mr Trump said on Truth Social that the pharmaceutical tariffs would not apply to companies that are building manufacturing plants in the United States, which he defined as either “breaking ground” or being “under construction”. It was unclear how the tariffs would apply to companies that already have factories in the US.
The prospect of prices doubling for some medicines could send shockwaves to voters as health care expenses, as well as the costs of Medicare and Medicaid, potentially increase.
Mr Trump said that foreign manufacturers of furniture and cabinets were flooding the United States with their products and that tariffs must be applied “for National Security and other reasons”.
The new tariffs on cabinets could further increase the costs for homebuilders at a time when many people seeking to buy a house feel priced out by the mix of housing shortages and high mortgage rates.
He said that foreign-made heavy trucks and parts are hurting domestic producers.
“Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions,” the president posted.
Mr Trump has long maintained that tariffs are the key to forcing companies to invest more in domestic factories. He has dismissed fears that importers would simply pass along much of the cost of the taxes to consumers and businesses in the form of higher prices.
The president continues to claim that inflation is no longer a challenge for the US economy, despite evidence to the contrary. The consumer price index has increased 2.9% over the past 12 months, up from an annual pace of 2.3% in April, when Mr Trump first launched a sweeping set of import taxes.
Nor is there evidence that the tariffs are creating factory jobs or more construction of manufacturing facilities. Since April, the Bureau of Labor Statistics has reported that manufacturers cut 42,000 jobs and builders have downsized by 8,000.
“There’s no inflation,” Mr Trump told reporters on Thursday. “We’re having unbelievable success.”
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