US President Donald Trump has announced sweeping new tariffs targeting pharmaceuticals, heavy trucks, and home furnishings, marking his most aggressive trade action since April’s global tariff blitz.
The Republican president revealed the measures on his Truth Social platform late Thursday evening, with the tariffs set to take effect from 1st October.
Trump declared a 100 per cent tariff on “any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America.”
The president also announced a 25 per cent levy on “all ‘Heavy (Big) Trucks’ made in other parts of the world” to protect American manufacturers including “Peterbilt, Kenworth, Freightliner, Mack Trucks and others.”
“We will be imposing these tariffs for many reasons, but above all else, for National Security purposes!” Trump wrote.
The truck tariffs target foreign competitors such as Sweden’s Volvo and Germany’s Daimler, whose brands include Freightliner and Western Star. Shares in both companies fell sharply in after-hours European trading following the announcement.
Home renovation materials were not spared, with Trump imposing a 50 per cent tariff on “all Kitchen Cabinets, Bathroom Vanities and associated products” alongside a 30 per cent levy on upholstered furniture.
According to the United States International Trade Commission, imports primarily from Asia accounted for 60 per cent of all furniture sold in 2022, including 86 per cent of wood furniture and 42 per cent of upholstered items.
Home furniture retailers Wayfair and Williams Sonoma, which rely heavily on imported goods, saw their shares tumble in after-hours trading.
The tariff announcement follows a Section 232 investigation launched earlier this year into truck imports. This trade law provision grants the president broad authority to impose restrictions on imports deemed threats to national security.
Trump has extensively utilised Section 232 powers to investigate and tax imported goods as part of his campaign to strengthen US manufacturing and challenge trading partners he claims exploit America.
The latest measures will likely reignite inflation concerns in the world’s largest economy as Trump pursues his mission to rebuild American manufacturing through protectionist policies.
His administration has already implemented a baseline 10 per cent tariff on all countries, with higher individualised rates on nations running significant trade surpluses with the US.
Emergency powers have been deployed to impose additional tariffs on trade partners Canada and Mexico, as well as China, citing concerns over fentanyl trafficking and illegal immigration.
The relationship between these new October tariffs and existing measures remains unclear as the administration prepares to implement the latest trade restrictions.
