The United States and the European Union have agreed to impose a 15% tariff on branded pharmaceuticals shipped from the bloc to the U.S., ending the sector’s long-standing duty-free status. The levy is part of a broader trans-Atlantic trade accord announced over the weekend, U.S. officials said. Wall Street analysts calculate the tariff could add between $13 billion and $19 billion to annual industry costs. Europe supplies about 60% of America’s imported medicines, valued at $97.1 billion in 2024, raising the prospect that drugmakers—or ultimately patients—could absorb higher prices. Certain generic medicines are expected to remain exempt, and the surcharge will not take effect until the Commerce Department completes an ongoing Section 232 national-security probe of pharmaceutical supply chains. A White House official indicated the rate would stay at 15% once implemented, potentially as early as Aug. 1. The agreement follows President Donald Trump’s earlier warnings that tariffs on European drugs could reach 200%. While the deal caps the duty well below that level, companies are stockpiling inventory and striking new manufacturing and research contracts to blunt the impact. Industry groups and investors are still waiting for clarity on calculation methods, phase-in schedules and whether further sector-specific duties might follow.