President Donald Trump of the United States has introduced significant new tariffs targeting pharmaceutical products, large trucks, and home renovation fixtures and furniture.
The announcement, made late Thursday, represents the most aggressive trade policy move by Trump since last April’s unexpected introduction of reciprocal tariffs on nearly all U.S. trading partners, signaling a resurgence of the Republican president’s trade war.
From October 1, Trump declared on Truth Social that a 100% tariff will be applied to any branded or patented pharmaceutical product unless the manufacturing company is constructing a pharmaceutical plant in the U.S.
On Friday, shares of Asian pharmaceutical companies with significant U.S. market exposure, such as South Korea’s Samsung Biologics, experienced declines.
Australia, which exported approximately $1.3 billion in pharmaceutical products to the U.S. in 2024 according to the United Nations Comtrade Database, criticized Trump’s tariff decision.
In another Truth Social post, Trump announced a 25% tariff on all “Heavy (Big) Trucks” manufactured outside the U.S. to bolster domestic manufacturers like Peterbilt, Kenworth, Freightliner, Mack Trucks, and others.
Foreign competitors in the U.S. market, including Sweden’s Volvo and Germany’s Daimler, saw their shares drop sharply in after-hours trading in Europe.
Trump justified the truck tariffs by citing multiple reasons, primarily emphasizing “National Security purposes!”
Earlier this year, the Trump administration initiated a Section 232 investigation into truck imports to assess their impact on national security, paving the way for Thursday’s tariff announcement.
Section 232 is a trade law provision granting the president extensive authority to impose tariffs or restrictions on imports deemed a threat to national security.
Trump also revealed plans for a 50% tariff on home renovation materials and a 30% tariff on upholstered furniture, claiming these products are flooding the U.S. market from overseas.
According to the U.S. International Trade Commission, in 2022, imports, primarily from Asia, accounted for 60% of all furniture sold in the U.S., including 86% of wood furniture and 42% of upholstered furniture.
Shares of home furniture retailers like Wayfair and Williams Sonoma, which rely heavily on imported goods, fell sharply in after-hours trading.
The Trump administration has already implemented a baseline 10% tariff on all countries, with higher tailored rates for nations with significant trade surpluses with the U.S.
Additionally, Trump has invoked emergency powers to impose extra tariffs on trade partners Canada, Mexico, and China, citing issues related to fentanyl trafficking and undocumented migration.
It remains uncertain how these new tariffs will interact with the existing trade measures.
The European Union noted on Friday that its trade agreement with the U.S., finalized in July, protects the bloc’s drug exports from tariffs exceeding 15%.
EU trade spokesman Olof Gill stated, “This clear all-inclusive 15 percent tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators.”
The UK expressed that it is engaging with the U.S. regarding the pharmaceutical tariffs, seeking a favorable resolution.
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