U.S. President Donald Trump announced on Thursday a fresh set of tariffs targeting a wide range of imported products, including a 100% duty on branded medicines and a 25% levy on heavy-duty trucks. The measures, which take effect next week, mark the latest escalation in his administration’s protectionist trade agenda.
Tariffs have been a hallmark of Trump’s second term, with duties ranging from 10% to 50% already imposed on key trading partners. The latest actions, disclosed on Truth Social, extend this approach and add significant new categories. Among them are a 50% tariff on kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture, all starting October 1.
Impact on global markets
Trump justified the move as a response to what he described as a “flood” of foreign household goods entering the United States. The announcement triggered sharp market reactions across Asia. Shares of Japan’s Sumitomo Pharma slid 4.3%, while Australian biotech CSL plunged to its lowest level in six years. A benchmark tracking Chinese furniture makers also dropped 1.1%.
According to Trump, the pharmaceutical tariff will apply to all branded or patented drugs unless the manufacturer has already begun constructing a production facility in the U.S. The Pharmaceutical Research and Manufacturers of America warned that such measures could jeopardize billions of dollars in new domestic investments.
Tariffs as a policy tool
The administration has increasingly used tariffs as leverage in trade negotiations and foreign policy. Treasury Secretary Scott Bessent recently claimed that tariff revenues could reach $300 billion by year’s end. Trump has also ordered multiple investigations into imports ranging from semiconductors and wind turbines to critical minerals, with potential new duties to follow.
While national security provisions underpin these actions, existing trade agreements with Japan, the EU, and the UK cap tariffs on specific goods such as autos and pharmaceuticals, meaning the new duties may not exceed treaty limits.
Heavy-duty truck industry in focus
Trump said the 25% tariff on trucks is intended to shield U.S. manufacturers, naming Peterbilt, Kenworth, and Freightliner as likely beneficiaries. However, industry groups have voiced concerns. The U.S. Chamber of Commerce cautioned that the top import sources—Mexico, Canada, Japan, Germany, and Finland—are close allies and pose no security risks.
Mexico, the largest supplier of medium- and heavy-duty trucks to the U.S., warned that the new tariffs would affect an industry where vehicles already contain about 50% American-made components. Imports of these vehicles from Mexico have tripled since 2019.
Furniture and inflation risks
Trump previously hinted at tariffs on furniture, arguing they would help restore jobs in states like North Carolina, South Carolina, and Michigan. U.S. furniture and wood manufacturing jobs have halved since 2000, with imports now covering much of domestic demand. In 2024, the U.S. imported $25.5 billion worth of furniture, about 60% of it from Vietnam and China.
Economists warn the new tariffs could drive up costs for trucks and other goods, feeding inflation just as the administration pledges to bring consumer prices down. Companies like Stellantis, which builds Ram trucks in Mexico, and Volvo, which is constructing a new $700 million plant there, could be directly impacted.
Both Mexican and Japanese industry groups have formally opposed the measures, arguing their companies already produce heavily in the U.S. and that higher tariffs could disrupt established supply chains without improving security.
