White House clarifies scope of drug tariff exemption: European Union, Japan still enjoy preferential treatment

On September 27th, according to a White House official, < b > Trump's new tariff policy on drug imports will not apply to countries with which the United States has reached an agreement containing drug provisions, providing promised tariff relief to economies including the European Union and Japan . Under the terms of the U.S.-EU framework agreement, tariffs on drugs imported from the European Union will be capped at 15%, the official said on Friday. Japanese drugs will also be taxed at the rate set out in the U.S.-Japan agreement, the official added. Trump said on Thursday that the United States will impose a 100% tariff on "any brand-name or patented drug" unless the company is building a pharmaceutical plant in the United States, which is defined as "already started or under construction". The sudden announcement contained no other details, leaving some foreign capitals wondering whether the deal they reached with Washington still applies to the new drug tariff policy.