EU in 'very bad position' as Trump threatens 35 percent tariffs: analyst

EU is in 'very bad position', said a European policy analyst on Wednesday (August 6), after U.S. President Donald Trump threatened to impose 35 percent tariffs if the bloc fails to meet investment promises agreed for the trade deal.

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Trump plans to raise tariffs on EU pharmaceutical imports to 250%, starting with a small rate this year.
Experts warn the move could wipe out a third of EU drug exports, causing severe industry disruption.
EU leaders say the trade deal leaves them with little leverage to counter escalating US demands.

EU is seeing the consequences of a 'very bad' deal, said Brussels-based research centre EPC's Varg Folkman, adding that the EU Commission seems to be left with 'very little leverage' for ongoing negotiations.

Trump also said on Tuesday (August 5) the U.S. would be initially putting a "small tariff" on pharmaceutical imports before increasing the rate in a year or so.

"In one year, one and a half years maximum, it's going to go to 150 percent and then it's going to go to 250 percent because we want pharmaceuticals made in our country," Trump told CNBC in an interview.

Folkman stressed that 150 or 250 percent tariffs on these products could prove "catastrophic" for the European pharmaceutical industry, as it would mean wiping out roughly one-third of its drug exports with limited alternative markets available.