Second round of EU-US tariffs negotiations set to begin

Many criticized the EU for signing a bad agreement, but more and more analysts are pointing out that Brussels entered into a deal that was much less advantageous to the US, so in the end, it was the winner in economic terms.

However, the negotiations do not stop there: the European Commission would like to further improve its position.

The spokesperson for the EU executive body emphasized that this paved the way for a new round of negotiations, in which the parties would seek to resolve the remaining issues.

According to Les Echos, the European side wants to achieve duty-free status for intellectual property, medical devices and chemicals, among other things, which would also be important for US industry and the service sector.

However, the negotiations caused further tension right from the start when US President Donald Trump threatened to impose tariffs on pharmaceutical products, with the prospect of duties of up to 250%.

As he said, the goal is to manufacture drugs in the United States. The introduction is planned to be gradual, following a transition period of one and a half years, which may be followed by a 150% and then a 250% tariff. Following the US President's statement, it became clear that

the fate of the pharmaceutical industry is still uncertain.

The measure would have a particularly severe impact on Ireland, half of whose exports are related to the pharmaceutical industry, with a significant portion going to the US market. According to experts, tariffs of this magnitude would discourage US companies from establishing themselves in Ireland, while those already operating there might consider scaling back or relocating their investments. The move would also affect the high-tech sector, which also plays a significant role in the Irish economy.

Trump promised a decision on tariffs on pharmaceuticals and semiconductors next week, and although a transition period is planned for the pharmaceutical industry, this is not yet on the agenda for other sectors.

The United States and the European Union may soon issue a joint statement setting out a framework for further negotiations.

The document is not legally binding, but it requires approval from the White House, the Department of Commerce, and the US chief trade negotiator.

According to EU diplomats, the agreement on a 15% cap at least provides predictability for companies amid a persistently protectionist US policy. They believe that

any other alternative would have been worse, especially now that the EU is facing significant burdens due to its support for Ukraine and its own structural challenges.

At the same time, negotiations are continuing on tariffs for steel products, where a 50% rate is currently in effect, and not only tariffs but also quantitative quotas and concessions for special types of steel are on the agenda.

Cover photo (for illustration purposes only): Portfolio