MNI BRIEF: EU-U.S. Statement Sets 15% Ceiling For Pharma, Cars

The European Commission has won a commitment from the U.S. to introduce a 15% tariff ceiling on pharma and semiconductor tariffs once a 232 security investigation concludes, Trade Commissioner Maros Sefcovic said on Thursday, announcing a joint statement by the two sides.

The 15% ceiling will also apply to cars and car parts, although that will be conditional on a legislative proposal to reduce tariffs on U.S. industrial goods to zero and provide preferential access for food exports. So long as this happens later this month, the 15% tariff on cars would be backdated to Aug 1, Sefcovic said    

"The alternative [would have been] a trade war with sky-high tariffs which helps no-one,” he said, adding that the EU had not been able to persuade the U.S. to exempt wines and spirits from a hike in tariffs to 15%, though difficult work would continue to try and exempt more sectors. (See MNI: EU-US Joint Trade Statement Seen Lacking Key Detail )