President Donald Trump has unveiled a new round of tariffs on a wide range of imported goods, including a 100 per cent duty on branded pharmaceuticals, a 25 per cent tariff on heavy-duty trucks, and a 50 per cent levy on kitchen cabinets. Additional tariffs of 50 per cent on bathroom vanities and 30 per cent on upholstered furniture will follow next week, with all measures due to take effect from 1 October.
The announcement marks a sharp escalation in Trump’s trade policy, particularly with regard to pharmaceuticals. The United States imported nearly $233bn in pharmaceutical and medicinal products in 2024, according to the Census Bureau. Industry groups have warned that doubling the cost of imported medicines could have severe consequences for patients, insurers and public health programmes such as Medicare and Medicaid.
Pascal Chan, vice-president for strategic policy and supply chains at the Canadian Chamber of Commerce, cautioned that the tariffs could trigger “immediate price hikes, strained insurance systems, hospital shortages, and the real risk of patients rationing or foregoing essential medicines”. The advocacy group 314 Action described the move as “catastrophic”, warning that “people across the country will die” if the tariffs are enforced.
Trump had previously suggested that pharmaceutical tariffs would be introduced gradually, allowing companies time to relocate production to the United States. However, the sudden imposition of a 100 per cent duty has taken the industry by surprise. On Truth Social, Trump said the tariffs would not apply to firms currently building manufacturing plants in the US, though it remains unclear how the exemption will be applied to companies with existing facilities.
Several major pharmaceutical firms, including AstraZeneca, Roche, Novartis, Eli Lilly and Johnson & Johnson, have already announced plans to expand US-based production in anticipation of such measures. The White House has hailed these investments as evidence of the policy’s success.
The president also justified tariffs on furniture and cabinetry by citing “national security and other reasons”, claiming that imports were “flooding” the US market and undermining domestic manufacturers. He argued that the 25 per cent tariff on heavy-duty trucks would protect American producers such as Peterbilt, Kenworth and Freightliner from “unfair outside competition”.
The measures come at a time of economic uncertainty. While the stock market remains buoyant, inflationary pressures are mounting and job growth has slowed. Federal Reserve chair Jerome Powell recently warned that rising goods prices were driving inflation higher, a trend likely to be exacerbated by the new tariffs. Trump has repeatedly called for Powell’s resignation, urging the Fed to cut interest rates more aggressively.
The US Chamber of Commerce has urged restraint, noting that the leading sources of imports affected by the tariffs include Mexico, Canada, Japan, Germany and Finland, all close allies of the United States. Mexico, the largest exporter of medium- and heavy-duty trucks to the US, has strongly opposed the measures, pointing out that its vehicles typically contain around 50 per cent US-made components.
Imports of heavy vehicles from Mexico have tripled since 2019, and the country remains the world’s leading exporter of tractor trucks, 95 per cent of which are destined for the US market. The Japanese Automobile Manufacturers Association has also voiced opposition, noting that Japanese firms have already shifted significant production of heavy trucks to the United States.
Critics warn that the tariffs could raise transport costs and feed through into higher consumer prices, particularly for groceries and other essentials, undermining Trump’s pledge to reduce inflation. Nonetheless, the administration insists the measures are necessary to protect American industry and ensure “national security”.
The tariffs are set to take effect in less than a week, with businesses and consumers bracing for the impact.
