US President Donald Trump has announced a new round of tariffs on imported goods. From October 1, branded and patented medicines will face a 100 percent duty if companies do not operate factories in the United States.
Washington will also apply a 25 percent tariff on heavy-duty trucks. Kitchen and bathroom cabinets will face a 50 percent duty. Trump unveiled the measures on Thursday, describing them as essential to shield American manufacturers.
On Truth Social, he argued that a “flood” of imports made the action unavoidable. He said the tariffs were necessary to defend domestic industries.
The announcement came despite opposition from American businesses, which have repeatedly urged the White House to avoid new duties.
Pharmaceutical sector braces for impact
Neil Shearing, chief economist at Capital Economics, said the tariffs were less sweeping than they appeared. Generic drugs are excluded, along with firms investing in US production.
He noted that many of the world’s largest pharmaceutical companies already operate American plants or plan to establish them soon.
Ireland’s Trade Minister Simon Harris cited the August 21 US-EU agreement. He said the deal capped tariffs on European pharmaceutical exports at 15 percent.
United Nations figures show that 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 described the announcement as concerning. Britain, the spokesperson said, would continue close engagement with US officials.
UK drugmakers deepen US commitments
GlaxoSmithKline already runs plants in the United States. Last week, the company pledged 30 billion dollars for research and manufacturing investment over five years.
AstraZeneca also maintains facilities in America. 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 British drugmakers from new tariffs. He pointed to significant commitments in advanced manufacturing.
Recently, several firms withdrew investment plans from Britain, blaming weak conditions in the sector.
Jane Sydenham, investment director at Rathbones, said Trump’s trade agenda created uncertainty. She argued that his policies, more than Britain’s economic outlook, were driving investment decisions.
Trucks and furniture targeted by new levies
Trump said the new tariffs on heavy-duty trucks would protect US producers from unfair foreign competition. He added that the measures would help firms such as Peterbilt and Mack Trucks.
He also introduced duties on kitchen and bathroom cabinets as well as other furniture. He said high import levels were damaging domestic businesses.
From next week, upholstered furniture will face a 30 percent tariff.
Swedish retailer Ikea said the tariffs complicate business operations. The company said it is monitoring developments closely.
Tariffs remain pillar of Trump’s policy
Tariffs have become a defining element of Trump’s second term. In August, sweeping levies on more than 90 countries came into force. The administration said the goal was to create jobs and strengthen US production.
Earlier, Trump imposed targeted tariffs on steel, copper, aluminium, cars and auto components.
The US Chamber of Commerce warned against fresh duties this year. It highlighted that most truck parts are sourced from Mexico, Canada, Germany, Finland and Japan.
Mexico and Canada supplied more than half of America’s imports of medium and heavy truck parts last year. The chamber warned that shifting production domestically was unrealistic and would increase costs.
Experts highlight risks for consumers
Trade analyst Deborah Elms of the Hinrich Foundation said the tariffs favour American producers but are “terrible” for consumers. She warned that the measures would drive up prices.
She explained that the new tariffs cover more goods and at higher rates than Trump’s earlier reciprocal tariffs, which targeted trade imbalances.
Elms added that industry-specific duties could serve as a fallback option. They could secure revenues if wider global tariffs are overturned in court.
