The just-announced trade “deal” (what’s the enforcement mechanism?) apparently covers pharmaceuticals. Where do we get most of our pharma (by value)? From Joey Politano, the answer:
Source: Politician.
I don’t think there’s anything on paper (and even if there were, would it mean much?).
So, not the 50% I pondered back in May, but still 15% is above 10%.
* To be clear, we do not know if Mr. Trump is taking a GLP-1.
** Back of the envelope calculation of tax increase. Effective tariff rate rises from 1.2% to 15%; 2024 imports from EU equals approx 600 bn. Assuming no price response (price elasticity is 0), and US as small country, this is a tax increase of $83bn/year, or $70 bn/year assuming a price elasticity of demand of unity.
