U.S. President Donald Trump on Thursday announced sweeping new import tariffs, including a 100% duty on patented drugs and a 25% levy on heavy-duty trucks, in a move that jolted global markets and reignited fears of a prolonged trade war.
The measures, unveiled on Trump’s Truth Social account, will take effect next Wednesday. They also include a 50% tariff on imported kitchen cabinets and bathroom vanities and a 30% duty on upholstered furniture, hitting consumer-facing industries already grappling with high costs and supply chain disruptions.
Trump framed the tariffs as necessary to protect U.S. manufacturing and national security, citing the Section 232 trade law. “These actions will ensure that America is no longer dependent on foreign production for critical goods,” he said.
The announcement comes after months of relative calm in Trump’s tariff battles, which have targeted trading partners with duties of up to 50% on steel, autos, and other goods. Economists warned the latest moves could raise consumer prices further, with the Federal Reserve noting tariffs are already contributing to U.S. inflation.
The White House said it would honor trade agreements with Japan and the European Union that cap drug tariffs at 15% for certain imports. Britain, however, was left exposed: its May trade deal with Washington did not specify pharmaceutical protections, meaning U.K.-made branded drugs will face the full 100% duty. London is lobbying for relief, with reports it may offer higher payments by the National Health Service for U.S.-made drugs
South Korea’s agreement also lacks specific safeguards for vehicles, leaving its auto exports subject to a 27.5% total tariff.
There are no exemptions for heavy trucks or furniture. Trump said the vehicle duties would boost U.S. producers such as Peterbilt, Kenworth and Freightliner. Shares of German truck makers Daimler Truck and Traton fell after the announcement.
Drugmakers have been preparing for higher costs. Trump said the 100% duty would only apply to firms without U.S.-based manufacturing projects. Swiss giant Roche underscored on Friday that one of its American subsidiaries had just begun building a new plan
Furniture exporters expressed alarm. Vietnam and China, which account for about 60% of U.S. furniture imports, are expected to be hardest hit. “Many of our members were shocked when we heard the news. I think the decision is unfair,” said Nguyen Thi Thu Hoai of Vietnam’s Wood and Handicraft Association.
U.S. furniture and wood products employment has halved since 2000 to about 340,000, according to government data.
The tariffs are part of Trump’s wider reliance on existing trade statutes after courts struck down his broader “reciprocal tariffs” plan. The Commerce Department this week launched new Section 232 investigations into industrial machinery, robotics, medical gear, and critical minerals, signaling further trade restrictions ahead.
Markets were subdued. U.S. stocks closed largely flat, while European pharmaceutical shares held steady. Analysts at BMO Economics said investors appear “content to keep calm and carry on” until the economic fallout of Trump’s trade war becomes more visible.
Source: Reuters
Written By Rodney Mbua
