"Negotiations With Countries Other Than China and the EU to Be Concluded by August 1"
United States President Donald Trump is expected to announce plans regarding pharmaceutical tariffs, including tariff rates and implementation, within two weeks, and the rates are expected to exceed 15%, according to U.S. Secretary of Commerce Howard Lutnick on July 29 (local time).
In an interview with CNBC that day, Secretary Lutnick introduced the ongoing negotiations with the European Union (EU), stating, "It was important for them to include pharmaceuticals as part of the items subject to a 15% tariff rate (the new reciprocal tariff rate set by the U.S. for the EU through negotiations). This is because President Trump is expected to announce a pharmaceutical policy within two weeks, and the figure will be even higher."
This suggests that President Trump is likely to announce import tariffs on pharmaceutical products exceeding 15% within two weeks.
Previously, on July 15, President Trump stated that pharmaceutical tariffs would "probably be imposed starting at the end of this month." At that time, President Trump explained his plan for a phased increase, saying that pharmaceutical companies would be given about a year to build manufacturing facilities in the United States, after which very high tariffs would be imposed.
Regarding the current status of trade negotiations, Secretary Lutnick said that negotiations with countries other than China and the EU would be concluded "by Friday (August 1)," and introduced that this day would be when the United States sets new tariff rates.
He stated, "Many countries have come forward with decent offers to open their markets by 30% or 50%, but when President Trump said, 'No, I want them to open further,' they came back with a 75% opening proposal." He added, "The 'price' of an agreement with the United States is now clear," emphasizing that it is "complete market opening."
Regarding the differing interpretations of the trade agreement between the United States and the EU, he said, "We look forward to continuing the dialogue," and mentioned that steel, aluminum, and digital services would be on the table in subsequent negotiations.
On this day, the EU stated in a press release titled "Explanation of the EU-U.S. Trade Agreement" that for steel and aluminum tariffs, which are currently subject to a 50% tariff, "a low-tariff-rate quota (TRQ) will be introduced for European exports at traditional trade levels, and the current 50% tariff will be lowered."
However, the White House, in materials posted on its website regarding the U.S.-EU trade agreement, did not mention the agreement to introduce a TRQ for European steel. Instead, it stated, "Tariffs on steel, aluminum, and copper items will not change. The EU will continue to pay 50%, and both sides will discuss securing supply chains for these products."
Regarding trade negotiations with India, Secretary Lutnick said that President Trump would make the final decision on whether to reach an agreement.
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