Trump: Tariffs on chips and medicines 25% and above, EU has a ceiling of 15%

New tariffs on strategic sectors

US President Donald Trump has announced the introduction of tariffs on imports of semiconductors and pharmaceutical products into the United States of "25 per cent and above", warning that the rates will "increase significantly" during the year. The measures affect two strategic sectors of global trade and follow a series of protectionist steps taken by the Trump administration since the beginning of its second term.

Trump originally threatened tariffs of up to 250% on pharmaceuticals and 100% on semiconductors in an attempt to force large international companies to move their production to the United States. These threats caused concern in global markets and led to intense diplomatic negotiations.

Agreement with the EU: 15 per cent cap

The European Union managed to negotiate significantly milder terms. Under the trade agreement signed in August 2025 by European Commission President Ursula von der Leyen and President Trump, tariffs on pharmaceuticals and semiconductors from the EU are capped at 15%. Generic drugs and their ingredients are even exempt and subject to a rate close to zero.

The Commission President described the agreement as a step that "brings stability for businesses and consumers". US Commerce Secretary Howard Lutnick called it "historic access to vast European markets". Critics in the European Parliament, however, argue that the agreement legitimises Trump's pressure tactics.

In exchange for lower tariffs, the EU has committed to massive purchases of American products: $750 billion for energy resources, at least $40 billion for American AI chips, and $600 billion in investments by European companies in American strategic sectors by 2028. Trump presented these figures as binding, but the official document refers to them only as "expectations".

January action: 25% on advanced chips

In January 2026, Trump signed a presidential order under Section 232 imposing a 25% tariff on a narrow category of advanced computing chips, including Nvidia H200 and AMD MI325X products. Exemptions apply to chips intended for US data centres, research, start-ups and consumer electronics.

The administration presents these measures as protecting national and economic security. However, according to analysts at Z2Data, broader tariffs on semiconductors threaten to disrupt global supply chains and increase the price of electronics.

Impact on Slovakia and Central Europe

Although the 15% cap for the EU mitigates the worst-case scenarios, Slovakia is among the countries with the fifth-highest effective customs burden in the entire Union. The effective customs rate for Slovak exporters to the US is 17.4%.

According to estimates by the National Bank of Slovakia, tariffs could reduce Slovakia's GDP by a total of 1.85 percentage points over the next three years. Slovak exports could fall by up to €4.4 billion by the end of 2029. The dominant automotive industry, which accounts for over 76% of exports to the US, faces annual losses of around €300 million.

The pharmaceutical and semiconductor sectors are not yet the main focus of Slovak exports to America, but the entire region will feel the indirect effects through supply chains and the weakening of European economic growth. As Progresívne Slovensko points out, US tariffs are having a significant impact on Slovak industry and require an active response from the government.

What will follow

The Trump administration is expected to decide on the scope of broader tariffs on semiconductors in the next 90 days. At the same time, investigations are underway into the impact on other sectors, including critical minerals, drones and robotics. Meanwhile, the European Union is facing pressure to meet its purchasing commitments — otherwise Trump may reconsider the 15% cap.