President Donald Trump has unveiled a fresh series of tariffs targeting imports. From October 1, branded and patented medicines shipped to the United States will face a 100 percent duty unless companies run factories in America.
The measures also include a 25 percent tariff on heavy-duty trucks and a 50 percent levy on kitchen and bathroom cabinets. Trump outlined the plan on Thursday, arguing it was essential to protect US industry.
On Truth Social, he said a “flood” of imports had harmed American producers. He claimed the tariffs would level the playing field and secure local jobs.
The announcement came despite repeated calls from US businesses urging the administration not to introduce new duties.
Drugmakers assess the fallout
Neil Shearing, chief economist at Capital Economics, said the measures were not as severe as they first appeared. He noted exemptions for generic medicines and for firms investing in US production.
He explained that many major pharmaceutical companies already operate American plants or have committed to new facilities.
Ireland’s Trade Minister Simon Harris pointed to the August 21 US-EU agreement. He said the deal capped tariffs on European pharmaceutical exports at 15 percent.
UN figures show Britain exported more than six billion dollars’ worth of medicines to the US last year.
In June, the US and UK signed a trade deal pledging “preferential treatment outcomes on pharmaceuticals.”
A UK government spokesperson called Trump’s move concerning. The spokesperson said Britain would continue close engagement with Washington.
British pharmaceutical giants expand in the US
GlaxoSmithKline already runs plants in America. Last week, it pledged 30 billion dollars for US research and production over five years.
AstraZeneca also maintains US facilities. 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 commitments should shield UK firms from new tariffs. He stressed the scale of advanced manufacturing projects already in progress.
Several drug companies have recently pulled investment from Britain, citing an unfavourable climate for the sector.
Jane Sydenham, investment director at Rathbones, said Trump’s policies played a key role. She argued that tariff uncertainty, more than Britain’s slow growth, shaped corporate decisions.
New levies on trucks and household goods
Trump confirmed that heavy-duty trucks will face a 25 percent duty. He said the tariff would strengthen US manufacturers such as Peterbilt and Mack Trucks.
He also announced duties on kitchen and bathroom cabinets and on other furniture imports. He said high import levels had harmed domestic businesses.
Starting next week, upholstered furniture will face a 30 percent tariff.
Swedish furniture retailer Ikea said the measures complicate business operations. The company said it is monitoring the situation closely.
Tariffs remain central to Trump’s economic strategy
Tariffs continue to shape Trump’s second term in office. In August, wide-ranging duties on imports from more than 90 countries came into effect. Washington said the aim was to create jobs and support American producers.
Earlier measures had targeted steel, copper, aluminium, cars and vehicle parts.
The US Chamber of Commerce warned strongly against new 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 all US imports of medium and heavy truck parts last year. The chamber said replacing these imports domestically was unrealistic and would raise costs.
Consumers expected to face higher costs
Deborah Elms, trade expert at the Hinrich Foundation, said the tariffs clearly favour US producers but are “terrible” for consumers. She predicted inevitable price increases.
She explained that the new duties cover more products and impose higher rates than Trump’s earlier reciprocal tariffs, which focused on correcting trade imbalances.
Elms added that the industry-specific levies could serve as a backup. They could provide revenue if broader global tariffs are overturned in court.
