President Donald Trump has announced another round of tariffs on imported products. Starting October 1, branded and patented medicines shipped to the United States will face a 100 percent duty unless the company has manufacturing plants on American soil.
The White House will also place a 25 percent tariff on heavy-duty trucks. Kitchen and bathroom cabinets will face a 50 percent duty. Trump introduced the measures on Thursday, calling them crucial to defend US industries.
On Truth Social, he claimed that a “flood” of imports was threatening local producers. He insisted the tariffs would provide protection for domestic manufacturers.
The announcement came despite appeals from American businesses urging Washington not to introduce further import taxes.
Drug companies face new pressure
Neil Shearing, chief economist at Capital Economics, said the pharmaceutical tariffs were not as sweeping as they appeared. He highlighted exemptions for generic medicines and for companies expanding factories in the US.
He added that many of the largest pharmaceutical firms already run production sites in America or plan to expand soon.
Ireland’s Trade Minister Simon Harris cited an August 21 US-EU agreement. He said the deal capped tariffs on European pharmaceutical exports at 15 percent.
United Nations figures show Britain exported more than six billion dollars in medicines to the US last year.
In June, Washington and London signed a trade pact pledging “preferential treatment outcomes on pharmaceuticals.”
A UK government spokesperson said the new measures were concerning. The spokesperson added that Britain would continue engaging with US counterparts in the coming days.
British pharmaceutical firms strengthen US base
GlaxoSmithKline already operates factories in the United States. Last week, it pledged 30 billion dollars of investment in research and production over the next five years.
AstraZeneca also maintains US plants. In July, it committed 50 billion dollars in American investment by 2030.
William Bain, head of trade policy at the British Chambers of Commerce, said these moves should shield British drugmakers from Trump’s new tariffs. He pointed to large-scale projects already underway.
Several firms have recently pulled investment from Britain, blaming an unfavourable business climate.
Jane Sydenham, investment director at Rathbones, said Trump’s tariff agenda was a decisive factor. She argued that uncertainty from US policies outweighed concerns about Britain’s economic growth.
Duties target trucks and furniture
Trump confirmed that heavy-duty trucks would face a 25 percent duty. He said the tariffs would help manufacturers such as Peterbilt and Mack Trucks resist unfair competition.
He also announced levies on kitchen and bathroom cabinets and on other imported furniture. He argued that high import levels were damaging US businesses.
From next week, upholstered furniture will face a 30 percent tariff.
Swedish furniture retailer Ikea said the tariffs create new challenges for its business. The company said it is monitoring the evolving situation closely.
Tariffs define Trump’s trade strategy
Tariffs remain central to Trump’s economic program in his second term. In August, duties on imports from more than 90 countries came into effect. Washington said the aim was to boost American jobs and strengthen local industry.
Earlier measures had targeted steel, copper, aluminium, cars and auto parts.
The US Chamber of Commerce spoke out against further tariffs this year. It noted that most truck parts come 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 it was unrealistic to replace these with domestic production and warned of rising costs.
Experts warn of consumer price hikes
Deborah Elms, trade specialist at the Hinrich Foundation, said the tariffs clearly favour US producers but are “terrible” for consumers. She predicted significant price increases.
She explained that the measures cover more goods and impose higher rates than Trump’s earlier reciprocal tariffs, which sought to correct trade imbalances.
Elms added that the industry-specific duties could serve as a fallback plan. They could generate revenue if wider global tariffs face defeat in court.
