US President Donald Trump has announced a new wave of import tariffs. From October 1, a 100 percent levy will apply to imported branded and patented medicines if a company does not operate a factory in the United States.
Washington will also impose a 25 percent import tax on heavy trucks. Kitchen and bathroom cabinets will face a 50 percent duty. The president unveiled these industry-focused measures on Thursday.
Trump wrote on his Truth Social platform that a “large-scale flooding” of foreign products made the tariffs necessary. He stressed the need to protect American manufacturers.
The announcements come despite warnings from US businesses, which urged the White House not to impose further tariffs.
Impact on the pharmaceutical industry
Neil Shearing, chief economist at Capital Economics, downplayed the move. He said the step was less dramatic than it appeared at first. Generic medicines are exempt, as are firms with factories in the United States.
Many of the world’s largest pharmaceutical companies already produce in the United States. Others have announced plans to build plants soon, Shearing added.
Ireland’s Trade Minister Simon Harris pointed to a deal between the EU and US. He said the August 21 agreement capped new tariffs on European pharmaceutical exports at 15 percent.
According to the United Nations, the UK exported over six billion dollars’ worth of medicines to the US last year.
A trade agreement signed in June between the US and the UK also promised “preferential treatment outcomes on pharmaceuticals.”
A UK government spokesperson described Trump’s step as concerning. Britain, he said, is in close contact with Washington and will continue discussions in the coming days.
British companies respond with investments
British pharma giant GlaxoSmithKline already operates plants in the United States. Last week, the company pledged 30 billion dollars in research and manufacturing investment over the next five years.
AstraZeneca also produces in the US. In July, the firm said it plans to invest 50 billion dollars by 2030.
William Bain, head of trade policy at the British Chambers of Commerce, said the UK’s leading pharma companies had already committed to major US investments. These commitments, he argued, should shield them from new tariffs.
Several drug companies recently pulled planned investments from the UK, citing a difficult environment for the industry.
Jane Sydenham, investment director at Rathbones, said the focus on the US market was a key factor. She argued that many decisions were less about Britain’s low growth and more about Trump’s agenda. His plans create uncertainty and influence where firms must invest.
Tariffs on trucks and furniture
Trump said the new tariffs on heavy-duty trucks would shield American producers from unfair competition. The move would boost companies such as Peterbilt and Mack Trucks.
He also announced duties on kitchen and bathroom cabinets, along with other furniture. He justified the step by pointing to high import levels that hurt local producers.
Starting next week, the US will impose a 30 percent tariff on upholstered furniture.
Swedish furniture giant Ikea said the tariffs made business more difficult. The company added it was closely monitoring the situation.
Trump’s economic strategy in focus
Tariffs have become a central tool in Trump’s second term. In early August, sweeping duties on more than 90 countries came into force. The aim is to boost jobs and US manufacturing.
Earlier, Trump had imposed sector-specific tariffs on steel, copper, aluminium, cars and vehicle components.
The US Chamber of Commerce warned this year against new tariffs. It stressed that many truck parts come from Mexico, Canada, Germany, Finland and Japan.
Mexico and Canada accounted for more than half of US imports of medium and heavy truck parts last year. The chamber said it was unrealistic to expect many of these parts to be produced domestically. Higher costs would be the result.
Experts voice concern
Trade expert Deborah Elms from the Hinrich Foundation said the new tariffs favour American producers but are “terrible” for consumers, as prices will rise.
The duties cover more products at higher rates than Trump’s earlier reciprocal tariffs, which targeted trade imbalances.
Elms added that these industry-specific taxes could act as a backup plan. They could secure revenues if the sweeping global tariffs are overturned in court.
