US President Donald Trump has unveiled sweeping new tariffs that hit industries from pharmaceuticals to heavy-duty trucks, sparking fresh concerns for global trade and manufacturing.
On Thursday, Trump announced a 100% levy on branded or patented drug imports starting 1 October, unless the company is building a factory on American soil. Alongside this, the White House will enforce a 25% tax on heavy-duty trucks, 50% duties on kitchen and bathroom cabinets, and a 30% tariff on upholstered furniture.
Speaking on his Truth Social platform, Trump said the measures were needed because of what he called the large-scale ‘flooding’ of foreign products into the US, adding that the new duties would help protect American manufacturers.
Reports from the BBC highlight that exemptions will apply to generic medicines and to firms investing in US facilities. Neil Shearing, chief economist at Capital Economics, noted that the drug tariff is ‘not quite as big a move as it appears at first sight’ since many large pharmaceutical companies already operate in the US or plan to expand there.
The European Federation of Pharmaceutical Industries and Associations has called for urgent talks to ensure the new tariffs do not harm patients. Britain, which exported over $6bn worth of pharmaceuticals to the US in 2024, also expressed concern. A UK government spokesperson confirmed that London was ‘actively engaging with the US’ to address industry worries.
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Reuters points out that Switzerland’s Roche recently broke ground on a new US facility, while AstraZeneca and GlaxoSmithKline have pledged billions in American investments. Ireland, a major hub for pharmaceutical exports, has also ramped up shipments to the US in anticipation of tariffs.
Trump’s announcement also targets heavy industry. The 25% levy on imported heavy-duty trucks aims to shield US brands like Peterbilt, Kenworth, and Mack Trucks. Yet, the US Chamber of Commerce has pushed back, stressing that many of the key truck components come from allies such as Mexico, Canada, Germany, and Japan.
In Europe, shares of Daimler Truck and Volkswagen’s Traton fell after the news broke. Meanwhile, Asian markets, especially pharmaceutical stocks, saw declines, though US equities remained steadier.
Furniture is also on the list, as the President confirmed 50% tariffs on cabinets and 30% on upholstered furniture, describing it as part of his push to ‘bring back’ America’s furniture industry. Swedish giant Ikea said the move makes business ‘more difficult,’ while Vietnam’s furniture sector called the decision ‘unfair.’
This latest tariff package builds on Trump’s sweeping trade policies, which already include duties on steel, copper, aluminum, and vehicle components.
The European Commission has reminded Washington that recent agreements capped tariffs on pharmaceuticals at 15%. Japan has echoed that message, saying its agreements guarantee parity with other trade partners.
Despite legal challenges to earlier global tariffs in the Supreme Court, Trump has shifted to more industry-specific measures under national security and trade law provisions.
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