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| Version 1 | Version 2 |
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| Trump’s latest tariff threat raises concerns for UK pharmaceuticals | Trump’s latest tariff threat raises concerns for UK pharmaceuticals |
| (about 20 hours later) | |
| Britain will ‘actively engage’ with US over possible 100% duties, with truck and cabinet makers also in firing line | Britain will ‘actively engage’ with US over possible 100% duties, with truck and cabinet makers also in firing line |
| Donald Trump’s threat to impose new tariffs from next week on branded drugs, trucks and kitchen cabinets has raised fresh concerns for the UK pharmaceutical industry, which remains excluded from Keir Starmer’s US tariff deal agreed five months ago. | Donald Trump’s threat to impose new tariffs from next week on branded drugs, trucks and kitchen cabinets has raised fresh concerns for the UK pharmaceutical industry, which remains excluded from Keir Starmer’s US tariff deal agreed five months ago. |
| Trump promised the UK “preferential treatment” on pharmaceutical tariffs in May but has yet to deliver on his pledge. | Trump promised the UK “preferential treatment” on pharmaceutical tariffs in May but has yet to deliver on his pledge. |
| A British government spokesperson said: “We know this will be concerning for industry, which is why we’ve been actively engaging with the US and will continue to do so over the coming days. | A British government spokesperson said: “We know this will be concerning for industry, which is why we’ve been actively engaging with the US and will continue to do so over the coming days. |
| “Sectors such as pharmaceuticals are critical to our economy … so we will continue to press the US for outcomes that reflect the strength of our relationship and deliver real benefits for UK industry.” | “Sectors such as pharmaceuticals are critical to our economy … so we will continue to press the US for outcomes that reflect the strength of our relationship and deliver real benefits for UK industry.” |
| Trump unveiled sweeping import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks and 50% on kitchen and bathroom cabinets which will come into force on 1 October. | Trump unveiled sweeping import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks and 50% on kitchen and bathroom cabinets which will come into force on 1 October. |
| The latest salvo is a reminder of the incomplete nature of the UK tariff deal, which mainly centred on cars, steel and aerospace goods including plane engines. | The latest salvo is a reminder of the incomplete nature of the UK tariff deal, which mainly centred on cars, steel and aerospace goods including plane engines. |
| Last week the UK rolled out the red carpet for Trump with his second state visit, including a banquet hosted by King Charles at Windsor Castle. | Last week the UK rolled out the red carpet for Trump with his second state visit, including a banquet hosted by King Charles at Windsor Castle. |
| But despite the charm offensive and the presence of several industry chiefs, including Emma Walmsley, the boss of the British pharmaceutical giant GSK, at the lavish event, the UK sector remains in limbo. | But despite the charm offensive and the presence of several industry chiefs, including Emma Walmsley, the boss of the British pharmaceutical giant GSK, at the lavish event, the UK sector remains in limbo. |
| Lale Akoner, a global market analyst at eToro, said UK concerns may not be founded as the drug tariffs would only apply to those companies that do not have, or are not planning to have, manufacturing bases in the US. | Lale Akoner, a global market analyst at eToro, said UK concerns may not be founded as the drug tariffs would only apply to those companies that do not have, or are not planning to have, manufacturing bases in the US. |
| “Investors see more bark than bite. Most global pharmaceutical giants, including Europe’s Novo Nordisk, Novartis, Roche, and AstraZeneca, already have US plants under way, which likely keeps them out of the firing line,” she said. | “Investors see more bark than bite. Most global pharmaceutical giants, including Europe’s Novo Nordisk, Novartis, Roche, and AstraZeneca, already have US plants under way, which likely keeps them out of the firing line,” she said. |
| The Swiss companies Roche and Novartis said on Friday they did not expect to be hit by Trump’s latest pharmaceutical tariff announcement because they were in the process of building US sites and investing there. | The Swiss companies Roche and Novartis said on Friday they did not expect to be hit by Trump’s latest pharmaceutical tariff announcement because they were in the process of building US sites and investing there. |
| The EU, which has been criticised by MEPs and industry representatives for a bad deal, reiterated on Friday its agreement on 15% blanket tariffs included pharmaceuticals and “represents an insurance policy that no higher tariffs will emerge for European economic operators”. | The EU, which has been criticised by MEPs and industry representatives for a bad deal, reiterated on Friday its agreement on 15% blanket tariffs included pharmaceuticals and “represents an insurance policy that no higher tariffs will emerge for European economic operators”. |
| Concerns remain, however, about medical devices after the US decision to open a section 232 investigation into the sector, seen as the first step in a path towards tariffs. Exports from the EU range from stents to X-ray machines, pacemakers, catheters and prosthetics. | Concerns remain, however, about medical devices after the US decision to open a section 232 investigation into the sector, seen as the first step in a path towards tariffs. Exports from the EU range from stents to X-ray machines, pacemakers, catheters and prosthetics. |
| The German auto trade body, the VDA, said Trump’s new tariffs on trucks made no sense. “It is incomprehensible that the US government would announce new additional tariffs of 25% on trucks immediately after announcing tariff reductions on passenger cars and automotive parts [from the EU]. Additional trade barriers would not only further burden investment and jobs in the US, but also weaken supply chains and increase costs.” | The German auto trade body, the VDA, said Trump’s new tariffs on trucks made no sense. “It is incomprehensible that the US government would announce new additional tariffs of 25% on trucks immediately after announcing tariff reductions on passenger cars and automotive parts [from the EU]. Additional trade barriers would not only further burden investment and jobs in the US, but also weaken supply chains and increase costs.” |
| It added that the German industry employed more than 120,000 people in the US. | It added that the German industry employed more than 120,000 people in the US. |
| Shares in some European truck makers were down on Friday after Trump’s announcement. | Shares in some European truck makers were down on Friday after Trump’s announcement. |
| Daimler Trucks, the major commercial vehicle manufacturer, was down more than 2%, as was the Traton Group, whose brands include Scania, MAN, International and Volkswagen Truck & Bus. | Daimler Trucks, the major commercial vehicle manufacturer, was down more than 2%, as was the Traton Group, whose brands include Scania, MAN, International and Volkswagen Truck & Bus. |
| Neil Shearing, the group chief economist at Capital Economics, said Mexico could be most affected by the new tariffs: “The US sources 78% of heavy truck imports from Mexico and 15% from Canada, so a key question is whether there will be exemptions for USMCA-compliant products. | Neil Shearing, the group chief economist at Capital Economics, said Mexico could be most affected by the new tariffs: “The US sources 78% of heavy truck imports from Mexico and 15% from Canada, so a key question is whether there will be exemptions for USMCA-compliant products. |
| “This is unclear at present, but it’s worth noting that most product-specific tariffs (with the exception of auto parts) have not had USMCA [United States-Mexico-Canada Agreement] exemptions. If there’s no USMCA exemption, then Mexico will be most heavily affected by the large truck tariffs.” | “This is unclear at present, but it’s worth noting that most product-specific tariffs (with the exception of auto parts) have not had USMCA [United States-Mexico-Canada Agreement] exemptions. If there’s no USMCA exemption, then Mexico will be most heavily affected by the large truck tariffs.” |
| The Swedish furniture company Ikea, which is covered by the EU’s 15% tariff rate, said the tariffs made business with the US “more difficult”. | The Swedish furniture company Ikea, which is covered by the EU’s 15% tariff rate, said the tariffs made business with the US “more difficult”. |
| “The tariffs are impacting our business similarly to other companies and we are closely monitoring the evolving situation,” a spokesperson for Ikea said. | “The tariffs are impacting our business similarly to other companies and we are closely monitoring the evolving situation,” a spokesperson for Ikea said. |
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