Tariffs on pharmaceuticals could reach 250%, says Trump
"We'll be putting (an) initially small tariff on pharmaceuticals, but in one year, one-and-a-half years, maximum, it's going to go to 150%," Mr Trump said in an interview on CNBC.
"And then it's going to go to 250% because we want pharmaceuticals made in our country," he added.
In the same interview, Mr Trump said he expects to raise the US tariff on Indian imports "very substantially over the next 24 hours" due to the country's purchases of Russian oil.
While Mr Trump has taken aim at products from different countries with varying tariff rates after imposing a 10% levy on almost all trading partners in April, these have excluded certain products he planned to target separately.
These sector-specific tariffs have generally come after government investigations that look into the national security concerns surrounding certain imports.
After earlier embarking on probes on imported semiconductors and pharmaceuticals, the Trump administration has signaled plans to wrap up these studies which could lead to new tariffs.
Already, Mr Trump has slapped steep tariffs of 50% on imported steel and aluminum, and also rolled out a separate but lower duty on autos and parts.
EU suspends retaliatory tariffs after deal
The threat of higher tariffs on pharmaceuticals came after the EU announced the suspension of its retaliatory tariffs on US goods worth €93 billion after Brussels struck a deal with Washington last month.
"The commission has today adopted the necessary legal procedures to suspend the implementation of our EU countermeasures, which were due to kick in on August 7," EU trade spokesman Olof Gill said.
Earlier, an official said that the 15% tariff that European Union goods face when entering the United States is all-inclusive, incorporating the Most Favoured Nation Rate, unlike some other countries with deals with the US.
The 15% rate applies to all goods, except for steel, aluminium, the EU official said.
Tariffs on pharmaceuticals and semiconductors are now zero, but if and when they rise as a result of the US 232 investigations, the tariff will be no higher than 15% as well.
This 15% ceiling also applies to cars and car parts. There are no quotas or limits on cars and car parts.
The official also said the EU is close to its final joint statement with the United States regarding their framework trade deal although no precise time can be given yet regarding when this will be published.
"It is pretty much ready and we are now waiting for our US colleagues to come back and confirm the final few things," said the official.
Deal provides 'insurance policy' against higher tariffs - EU
Olof Gill also said that the EU-US trade deal agreed last week provides an "insurance policy" against higher tariffs for European businesses.
"We reached a negotiated solution to avoid a lose-lose situation. That's what our member states asked for and what businesses asked for," Mr Gill told reporters at a lunchtime press briefing in Brussels.
"The agreement reached will have a stable platform from which we will secure crucial supply chains."
Mr Gill described as "surprising" comments made by Germany's finance minister Lars Klingbeil in Washington yesterday, who said that the EU had been "too weak" in trade negotiations with Washington.
"It is surprising to us to hear that a minister from the member state in question has aired that view," said Mr Gill.
Mr Klingbeil held talks in Washington yesterday with US Treasury Secretary Scott Bessent and was seeking an exemption from US tariffs for German steel.
Mr Gill also confirmed that the Commission has taken the necessary legal steps to suspend the EU's planned tariff countermeasures against the US.
Those measures were due to start on 7 August in the event that a trade deal was not reached.
The bloc's planned countermeasures will be suspected for six months, he confirmed.
US tariffs on EU imported goods at the agreed 15% rate are expected to come into force on 8 August.
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