President Donald Trump has announced a broad package of new tariffs. Starting October 1, branded and patented medicines imported into the United States will face a 100 percent duty unless manufacturers operate facilities within the country.
The plan also introduces a 25 percent tariff on heavy-duty trucks and a 50 percent levy on kitchen and bathroom cabinets. Trump presented the measures on Thursday, saying they are necessary to defend American industry.
He posted on Truth Social that a “flood” of foreign goods has damaged domestic producers. He argued the tariffs would restore balance and protect American jobs.
The announcement came despite strong appeals from US businesses warning that new duties would disrupt supply chains and increase costs.
Pharma sector prepares for changes
Neil Shearing, chief economist at Capital Economics, said the new pharmaceutical tariffs were less dramatic than they seemed. He explained that exemptions apply to generic medicines and to companies investing in US factories.
He added that many of the world’s biggest drugmakers already operate American plants or have announced new investments.
Ireland’s Trade Minister Simon Harris referred to the August 21 agreement between Washington and Brussels. He said the deal capped tariffs on European pharmaceutical exports at 15 percent.
According to United Nations data, Britain exported more than six billion dollars’ worth of pharmaceuticals to the US last year.
A June trade agreement between the US and UK also pledged “preferential treatment outcomes on pharmaceuticals.”
A UK government spokesperson described Trump’s tariffs as concerning. The spokesperson said London would continue direct discussions with Washington in the coming days.
British drugmakers expand US footprint
GlaxoSmithKline already runs facilities in the United States. Last week, it pledged to invest 30 billion dollars in American research and manufacturing over the next five years.
AstraZeneca also operates plants in the US. In July, it committed to invest 50 billion dollars by 2030.
William Bain, head of trade policy at the British Chambers of Commerce, said such large commitments should help shield UK companies from the new tariffs. He pointed to the scale of advanced manufacturing projects already underway.
Several firms have recently withdrawn investment from Britain, blaming weak sector conditions.
Jane Sydenham, investment director at Rathbones, said Trump’s tariff agenda was a decisive factor. She argued that uncertainty created by the US measures is driving decisions more than Britain’s growth outlook.
Trucks and home goods face new duties
Trump confirmed that heavy-duty trucks would be subject to a 25 percent duty. He said the move would directly benefit US producers such as Peterbilt and Mack Trucks.
He also announced tariffs on kitchen and bathroom cabinets as well as other furniture imports. He said excessive import levels were harming local industries.
Beginning next week, upholstered furniture will face a 30 percent tariff.
Swedish retailer Ikea said the measures make operations more challenging. The company said it is closely monitoring the trade environment.
Tariffs remain cornerstone of Trump’s policy
Tariffs continue to be central to Trump’s second term economic strategy. In August, sweeping levies on more than 90 countries came into effect. Washington said the aim was to strengthen domestic industry and create jobs.
Earlier tariffs targeted steel, copper, aluminium, cars and auto parts.
The US Chamber of Commerce has warned against new measures this year. It noted that most truck parts are sourced from Mexico, Canada, Germany, Finland and Japan.
Mexico and Canada together supplied more than half of America’s medium and heavy truck parts imports last year. The chamber said replacing them with domestic production was unrealistic and would drive costs higher.
Experts warn consumers will pay more
Deborah Elms, trade specialist at the Hinrich Foundation, said the tariffs favour American producers but are “terrible” for consumers. She warned that prices will inevitably rise.
She explained that the measures cover more products and impose higher rates than Trump’s earlier reciprocal tariffs, which sought to correct trade imbalances.
Elms added that industry-specific tariffs could act as a fallback plan. They could guarantee revenue if broader global tariffs are struck down in court.
