US President Donald Trump announced a new wave of import tariffs on Thursday, including a 100 percent tariff on branded and patented drugs, a 25 percent tariff on heavy trucks, a 50 percent tariff on kitchen and bathroom cabinets, and a 30 percent tariff on upholstered furniture. These tariffs will take effect on October 1, 2025.
Trump emphasized that the measures are intended to protect American industry and national security and aim to stop the “massive flood” of foreign products on the US market. The tariff on drugs does not apply if a company establishes a production facility in the US.
Pharmaceutical companies saw their share prices fall in Asia and Australia following the announcement. The Australian health minister described the tariffs as unfair and unjustified. Japan and the European Union are examining the impact of the measures in light of existing trade agreements that limit the level of tariffs.
The tariffs on trucks are aimed at protecting manufacturers such as Peterbilt, Kenworth, and Freightliner and could lead to higher transportation costs, which is likely to fuel inflation in consumer goods. The largest vehicle exporter to the US—Mexico—opposes the tariffs, pointing out that a significant portion of the vehicles contain American components.
(reuters, sie)