Trump Imposes Tariffs on Drugs, Trucks and Furniture

US President Donald Trump

US President Donald Trump on Thursday announced sweeping new import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, set to take effect on 1 October.

Trump said the move was intended to protect US manufacturing and national security. The announcement follows earlier measures that imposed duties of up to 50% on trading partners and targeted imports such as steel.

The new tariffs come amid mounting pressure on global businesses already struggling with supply chain disruptions, rising costs, and weakening consumer confidence. Economists have warned that the measures could add to inflationary pressures in the United States.

Asian markets reacted with losses, led by pharmaceutical stocks, though European markets later stabilised. Uncertainty remains over whether the new duties will stack on top of existing tariffs, with some recent trade deals placing caps on tariff levels for specific goods.

European officials said a preliminary agreement between the EU and the US sets a 15% tariff ceiling, while Japan also secured a deal ensuring its rates will not exceed those of other major partners.

Drugmakers have been bracing for the announcement. Trump clarified that the 100% tariff will apply only to producers without active US manufacturing projects. Major companies such as Roche and Novartis have already committed large investments to expand operations in the United States.

The pharmaceutical industry warned that new duties could jeopardise billions in planned investments and disrupt supplies. Ireland, home to many American-owned factories, reported a sharp surge in exports to the US ahead of the tariffs.

Trump also imposed a 50% tariff on imported kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture, arguing the measures would revive domestic production. The US furniture industry has lost half its workforce since 2000.

Higher truck tariffs, aimed at boosting manufacturers such as Peterbilt, Kenworth, and Freightliner, could raise transportation costs. Shares of German makers Daimler Truck and Traton fell after the announcement.

Trump has increasingly used tariffs as a foreign policy tool to renegotiate trade deals, secure concessions, and exert pressure on other countries. His administration argues the measures strengthen national security and generate revenue, estimating tariff collections could reach $300 billion by year’s end.