Trump slaps new US tariffs on drugs, trucks and furniture

US President Donald Trump on Thursday unveiled sweeping new import tariffs, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, set to come into force next week.

The latest salvo, which Trump said was to protect the US 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 has said it is also contributing to higher US consumer prices.

MARKETS WAIT FOR DETAILS

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

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 US 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, which represented “an insurance policy that no higher tariffs will emerge” for European companies.

Nathalie Moll, director general of the European Federation of Pharmaceutical Industries and Associations, said that urgent discussions were needed on “how to avoid any tariffs on medicines that harm patients in the EU and the US”

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 US manufacturing plants.

Many drugmakers have announced multibillion-dollar investments in the United States, and Switzerland’s Roche ROG.Sunderlined on Friday that one of its US units recently started work on a new facility.

Rival Novartis NOVN.S, which has also made a large US investment pledge, did not reply to a request for comment.

Switzerland is still discussing a trade agreement with the US and its economy ministry said it was waiting for more details on Trump’s latest announcement.

The Pharmaceutical Research and Manufacturers of America, an industry group, said companies “continue to announce hundreds of billions in new US investments. Tariffs risk those plans.”

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 US 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.