US Imposes New 100 Percent Pharma Tariffs and 15 Percent Trade Rates Amid Shifting EU Economic Landscape

Listeners, welcome to "European Union Tariff News and Tracker." Today’s update brings you the latest breaking headlines and detailed analysis on tariffs between the United States and the European Union as of September 26, 2025. This month has been marked by major policy shifts and headline developments stemming from President Trump’s ongoing push to reshape the transatlantic trade landscape. According to The Irish Times, President Trump announced that starting October 1st, the United States will impose a 100 percent tariff on any branded or patented pharmaceutical product from the European Union, unless the manufacturing company is already building production facilities within the US. This dramatic move is designed to encourage domestic drug production but has drawn sharp criticism from European officials struggling to chart a response. Recent weeks have also seen substantial updates on broader tariff rates across multiple sectors. International Trade Insights reports that as of September 1st, US-EU agreements have restructured the existing tariffs for numerous goods. Automobiles and auto parts with a US most-favored-nation, or MFN, rate of 15 percent or higher will remain at that rate, but those with a lower original rate now face a flat 15 percent tariff. Many other products—especially in categories like natural resources, civil aircraft, aircraft parts, and generic pharmaceuticals—will now default back to the MFN rate, removing earlier extra duties on these categories after lengthy negotiations between Washington and Brussels. Euronews recently highlighted the effect this climate is having on real trade: the US imported $53.7 billion worth of goods from the EU in July, marking a 10 percent drop from last year. Exports of key European goods like pharmaceuticals and cars have plummeted most dramatically. In July, American imports of European cars dropped to $4.68 billion, compared to $6.2 billion just a year ago. The pharmaceutical sector’s decline is nearly as steep, falling to $9.5 billion compared with $11.5 billion a year prior. These steep drops are hitting the EU’s trade surplus with the US hard, cutting it almost in half compared to last July. Trade experts widely attribute these challenges to the increased tariffs and to the euro’s ongoing strength against the dollar, which further reduces Europe’s export competitiveness. According to EY’s Trade Strategy Team, the current agreement between Washington and Brussels is that most EU products will be subject either to an MFN tariff or a new flat 15 percent, depending on the item, beginning September 2025. While the 15 percent headline tariff is lower than levels previously floated earlier this year, it marks a significant step up from longstanding norms, and business groups warn of substantial ongoing uncertainty as US trade policy remains unpredictable in view of the 2026 election cycle. Listeners, thank you for tuning in today. Please subscribe so you never miss an update on this fast- This content was created in partnership and with the help of Artificial Intelligence AI.