President Donald Trump has unveiled a broad new set of tariffs on imported goods. Starting October 1, branded and patented medicines entering the United States will face a 100 percent duty unless companies operate factories on American soil.
The plan also introduces a 25 percent tariff on heavy-duty trucks and a 50 percent levy on kitchen and bathroom cabinets. Trump presented the measures on Thursday, calling them essential to protect US manufacturers.
On Truth Social, he said a “flood” of imports has harmed domestic producers. He insisted the tariffs would support local companies and preserve American jobs.
The announcement comes despite warnings from US businesses that additional duties could disrupt supply chains and increase costs.
Pharmaceutical industry reacts
Neil Shearing, chief economist at Capital Economics, said the drug tariffs were less sweeping than they first appeared. He noted that generic medicines and companies investing in US production facilities are exempt.
He added that many major pharmaceutical companies already operate in the United States or plan to expand.
Ireland’s Trade Minister Simon Harris cited the August 21 US-EU deal, 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 pledged “preferential treatment outcomes on pharmaceuticals.”
A UK government spokesperson called the new tariffs concerning and said Britain would continue close engagement with US officials.
UK drugmakers expand in America
GlaxoSmithKline already runs US facilities. Last week, it pledged 30 billion dollars in research and manufacturing over the next five years.
AstraZeneca also operates American plants. In July, it announced plans to invest 50 billion dollars in the US by 2030.
William Bain, head of trade policy at the British Chambers of Commerce, said these investments should shield UK firms from new tariffs. He highlighted large-scale advanced manufacturing projects already underway.
Several pharmaceutical companies recently withdrew planned investments from Britain, citing difficult business conditions.
Jane Sydenham, investment director at Rathbones, said Trump’s trade policies were a key factor. She argued that uncertainty in US trade rules outweighed concerns about Britain’s slower growth.
Trucks and furniture targeted
Trump confirmed a 25 percent tariff 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 volumes were harming domestic producers.
From next week, upholstered furniture will face a 30 percent tariff.
Swedish furniture retailer Ikea said the new tariffs make business operations more difficult and added that it is closely monitoring the situation.
Tariffs remain a central part of Trump’s economic agenda
Tariffs continue to define Trump’s second-term trade strategy. In August, sweeping duties on imports from more than 90 countries took effect. Washington said the goal is to strengthen US manufacturing and create jobs.
Earlier measures had targeted steel, copper, aluminium, cars and vehicle components.
The US Chamber of Commerce warned against new tariffs 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 increase costs.
Experts warn of rising consumer costs
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 measures cover more products and impose higher rates than Trump’s earlier reciprocal tariffs, which aimed to address trade imbalances.
Elms added that industry-specific tariffs could serve as a fallback. They could secure revenue if broader global measures are overturned in court.
