President Donald Trump has announced a new wave of tariffs targeting key imports. From October 1, branded and patented medicines entering the United States will face a 100 percent duty unless companies operate production facilities in America.
The plan also includes a 25 percent tariff on heavy-duty trucks and a 50 percent levy on kitchen and bathroom cabinets. Trump unveiled the measures on Thursday, calling them crucial to protect US manufacturers.
On Truth Social, he said a “flood” of imports was hurting American producers. He argued the tariffs would support domestic companies and preserve US jobs.
The announcement comes despite repeated warnings from US businesses that additional duties could disrupt supply chains and increase costs.
Pharmaceutical industry evaluates impact
Neil Shearing, chief economist at Capital Economics, said the pharmaceutical tariffs were less severe than they appeared. He highlighted exemptions for generic drugs and for firms investing in US factories.
He added that many major pharmaceutical companies already operate in the United States or plan to expand production.
Ireland’s Trade Minister Simon Harris cited the August 21 US-EU agreement, which capped tariffs on European pharmaceutical exports at 15 percent.
United Nations data show Britain exported more than six billion dollars’ worth of medicines to the US last year.
A June trade deal between Washington and London also promised “preferential treatment outcomes on pharmaceuticals.”
A UK government spokesperson described the announcement as concerning. They said Britain would continue close engagement with US officials.
UK drugmakers increase American investments
GlaxoSmithKline already operates plants in the United States. Last week, it pledged 30 billion dollars in research and manufacturing over five years.
AstraZeneca also runs US facilities. In July, it announced plans to invest 50 billion dollars in the country by 2030.
William Bain, head of trade policy at the British Chambers of Commerce, said these investments should shield UK companies from new tariffs. He pointed to large-scale advanced manufacturing projects already underway.
Several pharmaceutical firms have recently withdrawn planned investments from Britain, citing difficult conditions.
Jane Sydenham, investment director at Rathbones, said Trump’s trade policies were a key factor. She argued that US policy uncertainty outweighed concerns about Britain’s slower economic growth.
Tariffs extend to trucks and furniture
Trump confirmed a 25 percent duty on heavy-duty trucks. He said the measure would benefit US manufacturers such as Peterbilt and Mack Trucks.
He also announced duties on kitchen and bathroom cabinets and other furniture imports. He argued that high import levels were undermining domestic producers.
From next week, upholstered furniture will face a 30 percent tariff.
Swedish retailer Ikea said the tariffs make operations more difficult and that the company is closely monitoring developments.
Tariffs remain central to Trump’s economic strategy
Tariffs continue to define Trump’s second-term trade policy. In August, sweeping duties on imports from more than 90 countries came into effect. Washington said the measures aim to strengthen US manufacturing and create jobs.
Earlier tariffs had targeted steel, copper, aluminium, cars and vehicle parts.
The US Chamber of Commerce warned against new duties this year. It noted that most truck parts are imported from Mexico, Canada, Germany, Finland and Japan.
Mexico and Canada supplied more than half of US imports of medium and heavy truck parts last year. The chamber said domestic production was unrealistic and would push costs higher.
Experts predict rising consumer prices
Deborah Elms, trade analyst at the Hinrich Foundation, said the tariffs favour US producers but are “terrible” for consumers. She predicted rising prices across multiple sectors.
She explained that the new measures cover more products and set higher rates than Trump’s earlier reciprocal tariffs, which aimed to address trade imbalances.
Elms added that industry-specific duties could serve as a fallback plan, generating revenue if broader global tariffs are challenged in court.
