Trump Imposes New Tariffs on Imported Drugs, Trucks, and Furniture
Trade groups in Vietnam and large retailers like IKEA have warned of higher prices and increased inflationary pressures.
Quick overview
- President Trump has announced new import tariffs, including a 100% levy on branded pharmaceuticals and a 25% duty on heavy trucks, effective next week.
- The tariffs aim to protect U.S. manufacturing and national security but may exacerbate inflation and supply chain issues.
- Exemptions will apply to pharmaceutical companies that have invested in U.S. production, while tariffs on furniture will also be implemented.
- The administration is exploring additional tariffs on medical supplies and machinery, with potential revenue from the new duties estimated at $300 billion this year.
U.S. President Donald Trump has announced sweeping new import tariffs, including a 100% levy on branded pharmaceuticals and a 25% duty on heavy trucks, set to take effect next week. Trump said the move is aimed at protecting U.S. manufacturing and safeguarding national security.
The measures add fresh pressure on global companies already grappling with supply chain disruptions, higher costs, and uncertain demand after years of trade wars. The Federal Reserve has warned that such policies are fueling inflation in the U.S., while markets reacted with heightened volatility.
The announcement, made via Truth Social, left unclear whether the new tariffs will be applied on top of existing duties. Recent deals with Japan, the European Union, and the United Kingdom included limits on surcharges in sensitive sectors such as pharmaceuticals. Brussels emphasized that its preliminary pact with Washington sets a global ceiling of 15%, guaranteeing that higher tariffs would not be imposed.
Exemptions for U.S. Investors
Trump confirmed that the new 100% tariff on branded medicines will apply only to companies that have not yet invested in U.S.-based production facilities. Pharmaceutical giants such as Roche and Novartis have already announced multibillion-dollar projects, while European industry groups warned of risks to patients and exports. Ireland, a major supplier of medicines to the U.S., front-loaded shipments ahead of the tariffs, sending exports up 536% in the first seven months of 2025.
Furniture and Beyond
The trade offensive also extends to furniture. Starting October 1, tariffs of 50% will hit cabinets and vanities, while upholstered furniture will face a 30% duty. Trump framed the measures as part of his pledge to “bring back” local industries. However, trade groups in Vietnam and large retailers like IKEA have warned of higher prices and increased inflationary pressures.
Meanwhile, the administration is investigating potential tariffs on medical supplies, machinery, and robotics under national security grounds—reinforcing the strategy of using trade duties as a foreign policy tool. Despite concerns over the impact on consumers and the transportation sector—particularly after the truck tariff announcement—the White House insists the new levies could generate as much as $300 billion in tariff revenue this year.
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