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janrinok writes in with the following story:

Pharmaceuticals and semiconductors appear to be included in the draft 15pc tariff deal agreed yesterday (27 July) between the EU and the US administration.

Large trade deals are complex and cannot of course be completed in months, but following a meeting between US president Donald Trump and EU commission president Ursula von der Leyen yesterday (27 July), a headline agreement has been reached that sees a single 15pc tariff on most EU exports to the US.

Commentators are still parsing the details. As with all deals agreed with the US under the current administration, details are sparse, and there is little certainty, but there will be some relief that any further trade war escalation has been postponed for now, ahead of the 1 August deadline set by Trump.

“We have stabilised on a single 15pc tariff rate for the vast majority of EU exports,” said von der Leyen in a press conference yesterday. “This rate applies across most sectors, including cars, semiconductors and pharmaceuticals. This 15pc is a clear ceiling. No stacking. All inclusive. So it gives much-needed clarity for our citizens and businesses. This is absolutely crucial.”

She added that the two largest trading blocs in the world had also agreed on zero-for-zero tariffs on a number of strategic products. “This includes all aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and critical raw materials. And we will keep working to add more products to this list,” said von der Leyen.

“On steel and aluminium, the EU and the US face the common external challenge of global overcapacity,” she said. “We will work together to ensure fair global competition. And to reduce barriers between us, tariffs will be cut. And a quota system will be put in place.

“This is a deal between the two largest economies in the world. We trade $1.7trn per year,” she said. “Together we are a market of 800m people. And we are nearly 44pc of global GDP. Just a few weeks after the NATO summit, this is the second building block, reaffirming the transatlantic partnership.”

The headline agreement also sees the EU agree to purchase more US energy products, always a priority for the US in the recent talks and, significantly, emphasises that the EU will purchase semiconductors from the US.

“US AI chips will help power our AI gigafactories and help the US to maintain their technological edge,” said von der Leyen.

The devil will of course be in the details in coming days and months, but the mood music is relatively positive for Ireland, with the apparent inclusion of pharmaceuticals and chips.

“Pharmaceuticals and semiconductors, which equate to 75pc of Ireland-US trade, are, we understand, included in the 15pc deal,” said Danny McCoy, IBEC CEO. “However, there is still a question around the stability of that rate over both the short and long-term in the face of ongoing Section 232 investigations.” He was referring to the investigation currently being carried out by the US administration “into the national security risks posed by US reliance on imported processed critical minerals and their derivative products”.

Reactions will be mixed on this deal, as it still represents a heavy burden for European countries, with many hoping for a deal closer to the UK 10pc agreement. However, there will also be some relief that the threatened 30pc Trump tariff has been avoided for now.

Original Submission