EU model sets 15% tariff cap

[Anchor]

Europe has secured a promise from the United States that tariffs on pharmaceuticals and semiconductors exported to the U.S. will not exceed 15%.

South Korea is also expected to serve as a benchmark, as it has agreed with the U.S. to receive most-favored-nation treatment for these items.

Kim Ji-sook reports from Washington.

[Report]

The U.S. has formalized an agreement with the EU in a joint statement to impose reciprocal tariffs only up to 15% on most European products.

In particular, it has specified that tariffs on pharmaceuticals and semiconductors will not exceed 15%.

This comes after U.S. President Trump threatened tariffs of 250% on pharmaceuticals and 100% on semiconductors, marking the EU as the first to secure a documented tariff cap.

Tariffs on European cars and parts have also been codified at 15%.

However, until the European Union legally enacts its promise to eliminate tariffs on U.S. machinery, a high tariff of 27.5% will remain in place.

[Maros Sefcovic/EU Trade & Economic Security Commissioner: "The U.S. will apply the 15% tariffs for cars as of the first of the month, in which the legislative proposals for lowering the tariff is launched."]

The U.S. has also officially included in the statement a plan to lower tariffs on a certain quantity of EU steel and aluminum products.

South Korean steel exported to the U.S. is subject to a 50% tariff, putting South Korean steel companies at a relative disadvantage.

However, the EU's request for a complete exemption from tariffs on wine and spirits to the U.S. was not accepted.

Regarding large-scale investments in the U.S., the discussions were framed as expressions of intent rather than obligations.

The formalized 'EU model' could serve as a basis for codifying agreements with South Korea.

South Korea has also reached an agreement to apply tariffs on semiconductors and pharmaceuticals that are not less favorable than those of other countries.

This is Kim Ji-sook reporting for KBS News from Washington.