Why the New U.S.-EU Trade Deal Could Raise Prices for Medicine, Machinery, and More

Schulz Trade Law
1 day ago
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Michelle Schulz and James Parker in suits against a blue financial graph. Text: The James Parker Show, discussing U.S.-EU trade deal impacts on prices. — Michelle Schulz on WBAP's The James Parker Show, Texas

Why the New U.S.-EU Trade Deal Could Raise Prices for Medicine, Machinery, and More

Michelle Schulz Explains

July 29, 2025

The James Show

WBAP, News Talk, Texas

Host: James Parker

A New Trade Deal, A New Price Tag for American Consumers

In a recent appearance on WBAP Radio, The James Parker Show (Dallas-Fort Worth), international trade attorney Michelle Schulz, founder of Schulz Trade Law, unpacked the economic impact of the latest U.S.-EU trade deal. While the Biden administration avoided the harshest proposed tariff levels—settling on a 15% rate instead of the threatened 30%—Schulz cautioned that the average American consumer is far from spared.

“Fifteen percent may sound better than thirty,” Schulz said, “but it’s still significantly higher than the historical average of 2.5%. This will increase the cost of the goods Americans rely on—especially high-value imports from Europe.”

Industries on the Line:

Pharma, Machinery, and High-Tech Manufacturing

Unlike many consumer goods imported from Asia, which are typically low-cost, U.S. imports from Europe include essential and complex items: pharmaceutical drugs, medical imaging devices, and high-precision industrial equipment.

Because these items are ad valorem taxed—tariffs based on the item’s total value—the percentage hit becomes especially painful. And that’s not the end of it: key raw materials like steel, aluminum, and copper remain under a 50% tariff, impacting everything from construction to oil and gas equipment.

“These aren’t just finished goods. They're the building blocks of America’s high-tech economy,” Schulz explained. “Higher costs ripple through the supply chain, affecting industries that manufacture, innovate, and build.”

Few Wins for U.S. Exporters—And Big Risks for Consumers

While trade deals often promise reciprocal benefits, Schulz emphasized that this agreement offers little in return for American exporters.

“Very few U.S. products are made entirely from domestic inputs. We rely on global supply chains,” she said. “This deal doesn’t suddenly make U.S. goods cheaper or more competitive abroad.”

The area of greatest concern? Pharmaceuticals. Germany, one of America’s top trading partners, supplies a significant portion of U.S. medications. Schulz warns consumers to brace for a 15% average price hike—and start comparison shopping now.

“Fifteen percent is a huge increase for drug prices,” she said. “That’s the new baseline. If you rely on medication, now’s the time to look at alternatives and check where your prescriptions are coming from.”

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