United States President Donald Trump revealed a fresh round of tariffs late last week, targeting pharmaceuticals, heavy-duty trucks, and furniture.
From 1 October, branded and patented drug imports will face a 100% levy unless manufacturers are building factories in the United States.
Washington will also impose a 25% duty on all heavy-duty truck imports and 50% tariffs on kitchen and bathroom cabinets, with an additional 30% tariff on upholstered furniture set to begin next week.
“The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside Countries,” Trump wrote on his Truth Social account.
The measures arrive despite repeated calls from American businesses urging the White House not to expand tariffs. Generic drugs and firms with ongoing U.S. factory investments are exempt.
The European Federation of Pharmaceutical Industries and Associations has pressed for “urgent discussions” to ensure patients in both the EU and U.S. are not harmed.
European officials noted that exports should be protected from tariffs above 15% under a bilateral framework agreed earlier this year.
The UK, which exported more than US$6 billion (A$1.91 billion) in pharmaceuticals to the U.S. last year, has also voiced concern.
A government spokesperson said: “We know this will be concerning for industry, which is why we’ve been actively engaging with the U.S. and will continue to do so over the coming days.”
British pharmaceutical giants are seeking to reassure investors. GlaxoSmithKline, which operates several U.S. manufacturing facilities, pledged last week to invest $30 billion in American research and production over the next five years.
AstraZeneca also confirmed plans in July to invest $50 billion in the U.S. by 2030.
The pharmaceutical sector has faced turbulence in the UK, with several firms recently pulling back investment, citing an unfavourable business environment.
Analysts at ANZ noted: “Confusion reigns about the implementation, how they interact with previously agreed country tariff deals, and where the tariff rates will ultimately end up.”
Trump said the new tariffs on heavy-duty trucks were designed to protect companies such as Peterbilt and Mack Trucks from “unfair outside competition”. He also linked the cabinet and furniture levies to high import volumes, undermining local producers.
The president has made tariffs a cornerstone of his second term. Sweeping duties on goods from more than 90 countries took effect in August, following earlier sector-specific tariffs on steel, copper, aluminium, cars, and auto parts.
The U.S. Chamber of Commerce has warned that the measures could disrupt supply chains, noted that many truck parts are sourced “overwhelmingly” from countries such as Mexico, Canada, Germany, Finland, and Japan.
Mexico and Canada alone provided more than half of all U.S. imports of medium and heavy-duty truck parts last year.
