U.S. President Donald Trump has backed down from imposing 250% tariffs on pharmaceuticals and semiconductors imported from the EU, reports BBC News.
In July, Trump said pharmaceuticals and semiconductors were not covered by the trade deal between the U.S. and EU, which left those industries facing tariffs rates of 250% and 100% respectively.
Read More: European Pharma Giants Threaten ‘Exodus’ to the U.S.
But on August 21, new details were released about the U.S.-EU agreement, indicating that EU pharma and semiconductor tariffs will be limited to 15%, which brings them in line with most other sectors in the trade deal.
However, the EU will first have to pass legislation reducing U.S. export tariffs to zero in order to get the 27.5% tariffs on car exports reduced to 15%.
In a joint statement on the agreement, the U.S. and EU said this was a "first step in a process" that could be expanded as the relationship develops.
The trade deal was first announced at a meeting between Trump and European Commission President Ursula von der Leyen in Scotland last month.
