President Donald Trump has announced a new series 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 factories on American soil.
The plan also imposes a 25 percent tariff on heavy-duty trucks and a 50 percent levy on kitchen and bathroom cabinets. Trump introduced the measures on Thursday, describing them as essential to protect US manufacturers.
On Truth Social, he said a “flood” of foreign products was harming American businesses. He insisted the tariffs would shield domestic companies and safeguard jobs.
The announcement came despite repeated warnings from US businesses that further duties could disrupt supply chains and raise costs.
Pharmaceutical industry braces for impact
Neil Shearing, chief economist at Capital Economics, said the pharmaceutical tariffs were less severe than they appeared. He noted that generic medicines and firms building US factories would be exempt.
He added that many of the world’s largest drugmakers already operate American plants or plan to expand.
Ireland’s Trade Minister Simon Harris referred to the August 21 US-EU agreement, which capped tariffs on European pharmaceutical exports at 15 percent.
United Nations data shows Britain exported more than six billion dollars’ worth of medicines to the US last year.
A June trade agreement between Washington and London also pledged “preferential treatment outcomes on pharmaceuticals.”
A UK government spokesperson described Trump’s announcement as concerning. They said Britain would continue close engagement with US officials.
UK pharmaceutical firms expand US operations
GlaxoSmithKline already runs facilities in the United States. Last week, it pledged 30 billion dollars for US research and production over 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 commitments should protect UK companies from new tariffs. He highlighted major ongoing projects in advanced manufacturing.
Several pharmaceutical firms recently withdrew planned investments from Britain, citing difficult conditions.
Jane Sydenham, investment director at Rathbones, said Trump’s tariff policies were a key factor. She argued that uncertainty in US trade policy outweighed concerns about Britain’s low growth.
Tariffs hit trucks and furniture
Trump confirmed that heavy-duty trucks will face a 25 percent duty. He said the measure would benefit US manufacturers, including Peterbilt and Mack Trucks.
He also announced tariffs on kitchen and bathroom cabinets and other furniture imports. He argued that high import volumes were undercutting domestic producers.
From next week, upholstered furniture will face a 30 percent tariff.
Swedish retailer Ikea said the tariffs make business operations more difficult. The company added that it is closely monitoring the situation.
Tariffs remain central to Trump’s economic strategy
Tariffs continue to shape Trump’s second-term policies. In August, broad duties on imports from over 90 countries took effect. The White House said the goal was 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 said most truck parts are sourced from Mexico, Canada, Germany, Finland and Japan.
Mexico and Canada supplied more than half of America’s medium and heavy truck parts imports last year. The chamber said domestic production was unrealistic and would raise costs.
Experts warn of higher prices
Deborah Elms, trade analyst at the Hinrich Foundation, said the tariffs favour US producers but are “terrible” for consumers. She predicted rising prices.
She explained that the new measures cover more products and set higher rates than Trump’s earlier reciprocal tariffs, which targeted trade imbalances.
Elms added that industry-specific duties could act as a fallback. They could generate revenue if broader global tariffs are challenged in court.
