US President Donald Trump has announced a fresh wave of tariffs targeting branded pharmaceuticals, heavy-duty trucks, and furniture imports, in a move he says is designed to shield American manufacturers from foreign competition. The measures, unveiled on Thursday via his Truth Social platform, will come into force from 1 October.
The most eye-catching measure is a 100% levy on patented or branded drug imports unless companies have active manufacturing facilities in the United States. Generic drugs, however, are exempt from the new duty. The announcement has sparked concern in Europe and Asia, where many of the world’s largest pharmaceutical producers are based.
Trump accused foreign producers of “flooding” the US market with low-cost imports that, he said, were undermining domestic production. “The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside Countries,” he wrote, insisting the new levies would “protect US manufacturers.”
The European Union immediately pushed back, with Ireland’s Trade Minister Simon Harris stressing that a recent EU-US agreement caps pharmaceutical tariffs at 15%. “I want to stress that the EU and US joint statement issued on 21 August made absolutely clear that any new tariffs announced by the US on pharmaceuticals would be capped at 15%,” he said.
The UK, which exported more than $6bn (£4.5bn) of pharmaceutical products to the US last year, called the announcement “concerning” and confirmed it was engaging directly with Washington.
Industry analysts were quick to point out the potential fallout. Jane Sydenham, investment director at Rathbones, said the pharmaceutical sector had endured a “rollercoaster ride” in recent months amid speculation over tariffs. “Nobody likes uncertainty and that’s been keeping a cloud over the sector,” she told BBC Radio 4’s Today programme.
However, Neil Shearing, chief economist at Capital Economics, argued that the policy might not be as sweeping as it appeared. “Many of the world’s largest pharmaceutical companies either already have some production in the US or have announced plans to build production in the near future,” he said.
Alongside pharmaceuticals, Trump unveiled a 25% duty on all heavy-duty truck imports, citing the need to protect US makers such as Peterbilt and Mack Trucks from “unfair outside competition.”
The US Chamber of Commerce had warned against such measures, noting that parts used in truck manufacturing are “overwhelmingly” sourced from Mexico, Canada, Germany, Finland and Japan—countries that are key US allies.
Furniture imports were also targeted. Washington will impose 50% tariffs on kitchen and bathroom cabinets, and from next week, a 30% levy on upholstered furniture. Trump said the duties were needed to protect small American manufacturers from surging imports.
Trade experts warned that while the measures may boost some domestic industries, they risk raising prices for US consumers. “These tariffs may be good for a handful of producers but are terrible for consumers,” said Deborah Elms of the Hinrich Foundation.
The new duties reflect Trump’s strategy of industry-focused tariffs, broadening the protectionist policies that have defined his second term. While his sweeping global levies remain challenged in court, these sector-specific duties appear to be his administration’s fallback to secure both political and economic wins.