U.S. President Donald Trump on Thursday unveiled sweeping new import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, triggering fresh trade uncertainty after a period of comparative calm.
The latest salvo, which Trump said was to protect the U.S. manufacturing industry and national security, follows wide-ranging duties on trading partners of up to 50% and other targeted levies on imported products such as steel.
It’s the latest upheaval for global businesses already struggling with snarled supply chains, soaring costs and consumer uncertainty caused by Trump’s trade war. The barrage has cast a pall over global growth, while the Federal Reserve, opens new tab has said it is also contributing to higher U.S. consumer prices.
INVESTORS ‘KEEP CALM AND CARRY ON’
The new actions are seen as part of the Trump administration’s shift to better-established legal authorities for its trade actions, given the risks associated with a case before the Supreme Court on the legality of his global tariffs, opens new tab.
The flurry of new announcements follows a period of relative calm after Trump reached trade deals with some key trading partners over the summer. They could reignite uncertainty that clouded the business outlook during the spring when new import levy announcements were an almost-weekly occurrence.
“If there is a particular sector where you see a new announcement, of course, that’s going to set you back,” Federal Reserve Bank of Richmond President Tom Barkin said on Bloomberg TV. “There’s sectors with a lot more clarity, and sectors with a lot less clarity.”
Asian stocks fell, led by pharmaceutical companies, but European shares recovered from early losses amid uncertainty over how widely some of the duties might apply.
Mixed U.S. equity futures indicated that investors were largely shrugging off Trump’s latest tariff announcement, BMO Economics said in a note.
“Until the U.S. economy shows more signs of stress from the trade war, investors seem content to keep calm and carry on,” BMO said.
Trump’s announcement on Truth Social did not say whether the new levies would be on top of existing national tariffs. Recent trade deals with Japan, the EU, and Britain include provisions that cap tariffs for specific products like pharmaceuticals.
A non-binding preliminary trade deal between the EU and the U.S. agreed to limit tariffs to 15%. Trump hasn’t yet signed an executive order confirming the agreement.
The European Commission said on Friday the agreement was “clear” that there was an all-inclusive 15% tariff ceiling.
Claudio Feltrin, chairman of Italian furniture industry association FederlegnoArredo, said he feared the tariffs could trigger a flood of imports from China and other exporters seeking alternative markets.
Japan has an agreement that its tariff rates will not exceed others including the EU, Tokyo’s trade negotiator Ryosei Akazawa said.
DRUGMAKERS HAVE BEEN BRACING FOR TARIFFS
Trump said the 100% tariff on branded drugs would only apply to producers that had not already broken ground on U.S. manufacturing plants.
Many drugmakers have announced multibillion-dollar investments in the United States, and Switzerland’s Roche (ROG.S), underlined on Friday that one of its U.S. units recently started work on a new facility.
Rival Novartis (NOVN.S), which has also made a large U.S. investment pledge, did not reply to a request for comment.
Trump had long threatened higher tariffs on drugmakers and Ireland, where mainly American-owned pharmaceutical factories employ about 2% of the workforce, has frontloaded much of its exports to the U.S. in anticipation.
Exports of chemical and related products, including medicinal and pharmaceutical products, leapt 536% year-on-year to 23.9 billion euros ($27.9 billion) in the first seven months of 2025, according to Ireland’s Central Statistics Office.
FURNITURE AND TRUCKS
Trump also followed through on a pledge to “bring back” America’s furniture business, saying he would start charging a 50% tariff on imported kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture.
All the new duties take effect from October 1.
More than half of the $85.6 billion in ingredients for medicines used in the U.S. are manufactured domestically, with the remainder from Europe and other U.S. allies, the U.S. pharmaceutical trade group said earlier this year.
About 60% of the $25.5 billion in U.S. furniture imports in 2024 came from Vietnam and China, according to Furniture Today, a trade publication.
“Many of our members were shocked when we heard the news. I think the decision on the additional tariff is unfair,” said Nguyen Thi Thu Hoai from the Wood and Handicraft Association of Dong Nai province, one of Vietnam’s largest furniture clusters.
Furniture and wood products manufacturing employment in the U.S. has halved since 2000 to around 340,000 today, according to government statistics.
Higher tariffs on commercial vehicles could put pressure on transportation costs just as Trump has vowed to reduce inflation, especially on consumer goods such as groceries.
Trump said the new heavy-duty truck tariffs would benefit companies such as Paccar-owned Peterbilt and Kenworth and Freightliner.
Shares of German truck makers Daimler Truck (DTGGe.DE), and Traton fell on news of the levies.
The U.S. Chamber of Commerce earlier urged against imposing new truck tariffs, noting the top five import sources are Mexico, Canada, Japan, Germany, and Finland, which pose “no threat to U.S. national security.”
By Joseph Muia
