President Donald Trump has revealed a series of targeted import tariffs designed to bolster U.S. manufacturing sectors vulnerable to foreign competition.
The measures, announced on Thursday via his Truth Social platform, include a 100% duty on branded or patented drug imports effective October 1, unless companies establish factories in the United States.
Additional levies encompass a 25% tax on heavy-duty trucks and 50% on kitchen and bathroom cabinets, with a 30% tariff on upholstered furniture set to begin next week.
These steps reflect the administration's ongoing commitment to countering what Trump described as the "large scale 'FLOODING' of these products into the United States by other outside Countries."
The policies build on earlier sector-specific tariffs covering steel, aluminum, and automobiles, extending the president's strategy to safeguard domestic jobs and industry.
The announcements have introduced fresh uncertainty into international trade dynamics, particularly affecting industries reliant on cross-border supply chains.
For pharmaceuticals, exemptions for generic drugs and U.S.-based production mitigate some effects, as noted by Neil Shearing, chief economist at Capital Economics, who said:
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.
U.S. business groups, including the Chamber of Commerce, have voiced opposition, highlighting potential cost increases for consumers and challenges in sourcing truck components from allies like Mexico and Canada.
Trade expert Deborah Elms from the Hinrich Foundation warned that such duties favor producers but are "terrible" for buyers, likely driving up prices across affected goods.
European and Asian markets reacted variably, with initial dips in pharmaceutical stocks giving way to stabilization as investors assess the scope of exemptions.
The Federal Reserve has linked prior tariff waves to elevated consumer prices, underscoring broader economic ripples.
Major pharmaceutical firms with U.S. investments, such as GlaxoSmithKline and AstraZeneca, appear positioned to navigate the changes, having committed billions to domestic expansion.
The UK government, a significant exporter of drugs to the U.S., plans continued engagement to protect mutual interests under recent trade pacts.
Furniture retailer Ikea acknowledged the added difficulties, stating the tariffs "are impacting our business similarly to other companies."
As legal challenges mount against broader global duties, these focused levies may serve as a revenue alternative while reinforcing national security priorities.
Overall, the moves signal a pivot to more precise trade tools, though they risk reigniting volatility in global markets after a summer of relative stability in U.S. negotiations with key partners.