Trump Imposes New U.S. Tariffs on Drugs, Trucks, and Furniture

Former President Donald Trump on Thursday announced sweeping new tariffs on a range of imported goods, including a 100% duty on branded pharmaceuticals and a 25% tariff on heavy trucks. The measures are set to take effect next week.

Tariffs have been a hallmark of Trump’s second term, ranging from broad levies of 10% to 50% on trading partners to targeted duties on specific products. While aimed at protecting U.S. industries, the policies have unsettled global markets and complicated business planning.

Trump made the latest announcement on Truth Social but did not clarify whether the new tariffs would be applied in addition to existing national duties or whether countries with trade agreements—such as Japan and the EU—would be exempt. Tokyo said it was still assessing the potential impact.

Additional tariffs include 50% on kitchen cabinets and bathroom vanities and 30% on upholstered furniture, all set to begin October 1. Trump justified the move by saying these products had been “flooding” into the U.S. from abroad.

Markets reacted sharply: shares of Asian pharmaceutical firms tumbled, with Australia’s CSL (CSL.AX) hitting a six-year low, Japan’s Sumitomo Pharma (4506.T) falling over 5%, and Hong Kong’s Hang Seng Biotech Index dropping 2.5%. A Chinese index tracking listed furniture manufacturers also slipped 1.1%.

The new tariffs reflect the Trump administration’s efforts to anchor its trade actions in more firmly established legal authorities, as challenges to earlier global tariffs remain under review by the Supreme Court. Trump said the 100% tariff would apply to all branded or patented drugs unless companies committed to building manufacturing plants in the U.S.

The Pharmaceutical Research and Manufacturers of America, an industry group, warned the move could jeopardize “hundreds of billions of dollars” in planned U.S. investments.

The administration has also launched over a dozen investigations into the national security implications of imports ranging from wind turbines and aircraft to semiconductors, copper, and critical minerals. This week, Trump added new probes into personal protective equipment, medical supplies, robotics, and industrial machinery.

A Tool of Foreign Policy
Trump has increasingly wielded tariffs as a foreign policy instrument, using them to force trade concessions, reopen negotiations, and exert political pressure. His administration argues the duties also provide a vital revenue stream, with Treasury Secretary Scott Basent projecting they could raise $300 billion by year’s end.

Previously, Trump imposed national security tariffs on steel, aluminum, copper, light vehicles, and auto parts. Existing trade deals with Japan, the EU, and the UK include provisions capping duties on certain products, suggesting the latest national security tariffs may not exceed those agreed limits.

Japan’s chief trade negotiator, Ryosei Akazawa, said Tokyo is assessing how the measures align with its agreements but stressed that Japanese pharmaceuticals will not face disproportionately higher duties given its “most-favored nation” status.

U.S. pharmaceutical trade groups note that 53% of the $85.6 billion worth of drug ingredients consumed domestically are manufactured in the U.S., with most of the remainder sourced from Europe and allied countries.

Furniture imports into the U.S. reached $25.5 billion in 2024, up 7% from the previous year, with about 60% coming from Vietnam and China, according to Furniture Today. Trump had already pledged new furniture tariffs in August, claiming they would revive industries in North Carolina, South Carolina, and Michigan. Employment in U.S. furniture and wood product manufacturing has halved since 2000, now standing at about 340,000.

Inflation Concerns
Tariffs on commercial trucks could push up transportation costs, complicating Trump’s parallel pledge to ease consumer inflation, especially for everyday goods like groceries. Trump argued the duties are necessary to shield U.S. truckmakers—including PACCAR’s Peterbilt and Kenworth and Daimler-owned Freightliner—from “unfair foreign competition.”

The U.S. Chamber of Commerce had urged the administration not to impose the truck tariffs, noting the top import sources—Mexico, Canada, Japan, Germany, and Finland—are allies that pose “no national security threat.”

Mexico, the largest exporter of medium and heavy-duty trucks to the U.S., has pushed back strongly. Officials told the Commerce Department in May that roughly 50% of Mexican-made trucks exported to the U.S. use American-made components, including diesel engines.

Stellantis (STLAM.MI), Chrysler’s parent company, is among the automakers producing heavy-duty Ram trucks and commercial vans in Mexico. Last year, U.S. imports of heavy vehicle parts from Mexico totaled nearly $128 billion, accounting for about 28% of all U.S. imports in that category.