President Donald Trump has announced a major package of tariffs on imported goods. 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 new measures also include a 25 percent tariff on heavy-duty trucks and a 50 percent levy on kitchen and bathroom cabinets. Trump unveiled the plan on Thursday, saying it is crucial to protect US manufacturers.
On Truth Social, he said a “flood” of imports has been harming American producers. He insisted the tariffs will support domestic companies and preserve US jobs.
The announcement comes despite warnings from US businesses that additional duties could disrupt supply chains and increase costs.
Pharmaceutical sector assesses impact
Neil Shearing, chief economist at Capital Economics, said the pharmaceutical tariffs were less extensive than they appeared. He noted that generic drugs and companies investing in US factories are exempt.
He added that many of the world’s largest pharmaceutical firms already operate in the United States or plan to expand production.
Ireland’s Trade Minister Simon Harris referenced the August 21 US-EU agreement. He said the deal 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 the US and UK also pledged “preferential treatment outcomes on pharmaceuticals.”
A UK government spokesperson called the new tariffs concerning. They said Britain would continue close engagement with US officials.
UK drugmakers increase US investment
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 companies from new tariffs. He highlighted major ongoing advanced manufacturing projects.
Several pharmaceutical firms have recently pulled planned investments from Britain, citing difficult conditions.
Jane Sydenham, investment director at Rathbones, said Trump’s trade policies were a key factor. She argued uncertainty from US tariffs outweighed concerns about Britain’s slow growth.
Tariffs extend to trucks and furniture
Trump confirmed a 25 percent duty on heavy-duty trucks. He said the tariffs 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 duties make business operations more difficult. The company said it is closely monitoring the evolving situation.
Tariffs remain central to Trump’s trade strategy
Tariffs continue to define Trump’s second-term trade agenda. 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 targeted steel, copper, aluminium, cars and vehicle parts.
The US Chamber of Commerce warned against new tariffs this year. It said 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 raise costs.
Experts warn of rising consumer prices
Deborah Elms, trade specialist at the Hinrich Foundation, said the tariffs favour US producers but are “terrible” for consumers. She predicted significant price increases.
She explained that the new measures cover more products and impose higher rates than Trump’s earlier reciprocal tariffs, which aimed to correct trade imbalances.
Elms added that industry-specific tariffs could serve as a fallback. They could secure revenue if broader global measures are challenged in court.
