President Donald Trump has unveiled a new set of tariffs on imported goods. Starting October 1, branded and patented medicines entering the United States will face a 100 percent duty unless companies run factories on American soil.
The tariffs also include a 25 percent duty on heavy-duty trucks and a 50 percent levy on kitchen and bathroom cabinets. Trump presented the measures on Thursday, calling them essential to protect American manufacturers.
On Truth Social, he said a “flood” of foreign products was hurting US businesses. He argued that the tariffs would shield domestic companies and preserve American jobs.
The announcement comes despite repeated warnings from US businesses that further duties could disrupt supply chains and increase costs.
Pharmaceutical sector reacts to new tariffs
Neil Shearing, chief economist at Capital Economics, said the pharmaceutical tariffs were less sweeping than they appeared. He noted that generic medicines and companies investing in US factories would be exempt.
He added that many major pharmaceutical firms already operate plants in the United States or have plans to expand.
Ireland’s Trade Minister Simon Harris highlighted the August 21 US-EU deal. He said the agreement capped US tariffs on European pharmaceutical exports at 15 percent.
United Nations data show that Britain exported more than six billion dollars’ worth of medicines to the US last year.
A June trade deal between Washington and London also pledged “preferential treatment outcomes on pharmaceuticals.”
A UK government spokesperson called the announcement concerning and said Britain would continue close engagement with US officials.
UK drugmakers boost US investments
GlaxoSmithKline already runs plants in the United States. Last week, it pledged 30 billion dollars in US research and manufacturing over five years.
AstraZeneca also operates American facilities. In July, it committed to investing 50 billion dollars in the US by 2030.
William Bain, head of trade policy at the British Chambers of Commerce, said these investments should protect UK companies from new tariffs. He highlighted the scale of advanced manufacturing projects already underway.
Several pharmaceutical firms recently withdrew planned investments from Britain, citing challenging conditions.
Jane Sydenham, investment director at Rathbones, said Trump’s policies were a key factor. She argued that US trade uncertainty had a greater impact on decisions than Britain’s slow growth.
Tariffs extend to trucks and furniture
Trump confirmed a 25 percent tariff on heavy-duty trucks. He said the duty would support US manufacturers like Peterbilt and Mack Trucks.
He also announced tariffs on kitchen and bathroom cabinets and other furniture imports. He argued that high import levels were undermining domestic producers.
From next week, upholstered furniture will face a 30 percent tariff.
Swedish retailer Ikea said the tariffs make doing business more difficult and that the company is monitoring developments closely.
Tariffs central to Trump’s economic strategy
Tariffs remain a cornerstone of Trump’s second-term trade policy. In August, broad duties on imports from over 90 countries took effect. Washington said the measures aim to create jobs and strengthen US manufacturing.
Previous tariffs had targeted steel, copper, aluminium, cars and vehicle parts.
The US Chamber of Commerce warned against new measures this year. It said 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 domestic production was unrealistic and would raise costs.
Analysts warn of rising consumer prices
Deborah Elms, trade expert at the Hinrich Foundation, said the tariffs favor US producers but are “terrible” for consumers. She predicted higher prices across multiple sectors.
She explained that the new measures cover more products and impose higher rates than Trump’s earlier reciprocal tariffs, which aimed to correct trade imbalances.
Elms added that industry-specific tariffs could serve as a fallback plan, generating revenue if broader global measures are challenged in court.
