In July, Trump had threatened to lift pharmaecutical tariffs to 200%, but speaking on CNBC on 5 August, Trump said they could eventually go as high as 250%. EU member state Ireland is a major pharmaceutical exporter to the US, as are other European nations: Ozempic manufacturer Novo Nordisk is also Europe-based, headquartered in Denmark.

First off, the accord officially establishes a 15% tariff rate for pharmaceuticals from the EU, a top source of U.S. drug imports. Generic pharmaceuticals will be exempt from the new agreement, meaning such drugs will face a roughly 2.5% tariff rate in place prior to the Trump administration.

The US and EU just moved one step closer to reshaping the world's biggest trading partnershipand the implications could hit fast. The joint statement released Thursday sets the stage for immediate tariff relief on European auto imports once the EU formally introduces its own industrial goods proposal.