President Donald Trump unleashed a fresh barrage of import tariffs on Thursday, targeting pharmaceuticals, heavy trucks, and household goods in a move designed to bolster U.S. manufacturing and national security. The announcements, posted on his Truth Social platform, signal an intensification of Trump’s protectionist agenda just months into his second term, drawing immediate backlash from industry groups and trading partners over potential price hikes and supply disruptions.
In a series of posts, Trump declared that starting October 1, the U.S. will impose a 100% tariff on any branded or patented pharmaceutical product unless the company is actively building a manufacturing plant in America—defined as “breaking ground” or “under construction.” He also announced a 25% tariff on all imported heavy-duty trucks, a 50% levy on kitchen cabinets, bathroom vanities, and related products, and a 30% tariff on upholstered furniture. “We must protect, for National Security and other reasons, our Manufacturing process,” Trump wrote in one post justifying the furniture and cabinet duties, citing a “large scale ‘FLOODING'” of these items from abroad.
The pharmaceutical tariffs, in particular, could double the cost of imported drugs for U.S. importers and consumers, exacerbating concerns about affordability in an industry already strained by inflation and supply chain issues. The U.S. imported about $158 billion in pharmaceutical products in 2023, with major suppliers including Ireland ($12.3 billion in packaged medicaments), Switzerland ($12.1 billion), Germany ($11.6 billion), and India ($9.2 billion). Vaccines and related biologics added another $65.1 billion, predominantly from Ireland and Germany.
Global Markets Reel as Shares Tumble
Financial markets reacted swiftly to the news, with pharmaceutical stocks across Europe and Asia posting sharp declines in early Friday trading. Swiss giants Novartis and Roche fell about 1.2%, while Germany’s Merck and Bayer dropped 1.1% and 1.5%, respectively. In Japan, Sumitomo Pharma closed down 3.5%, Otsuka Holdings shed 2.9%, and Daiichi Sankyo lost 2%. India’s pharmaceutical index slid 2%, with Sun Pharmaceutical Industries plunging 3% despite focusing mainly on generics exempt from the branded drug tariffs.
Australia’s CSL, the country’s largest biotech firm, hit a six-year low, closing 1.9% lower. U.S. markets, meanwhile, showed mixed responses; while some domestic manufacturers edged higher on expectations of boosted demand, broader indices dipped amid fears of retaliatory measures from affected nations.
Industry Warnings: Higher Costs and Shortages Loom
The Pharmaceutical Research and Manufacturers of America (PhRMA) swiftly condemned the pharma tariffs, arguing they could derail billions in planned U.S. investments and lead to medicine shortages. “Tariffs risk those plans because every dollar spent on tariffs is a dollar that cannot be invested in American manufacturing or the development of future treatments and cures,” said Alex Schriver, PhRMA’s senior vice president. The group noted that medicines are typically spared from tariffs to prevent exactly such disruptions.
Experts echoed these concerns but suggested workarounds for some firms. Namit Joshi, chairman of India’s Pharmaceutical Export Promotion Council, told CNN the tariffs are “unlikely to have an immediate impact” on Indian exports, as many large companies already operate U.S. facilities or repackaging units. Major players like AstraZeneca, Roche, Novartis, Eli Lilly, and Johnson & Johnson have announced or expanded U.S. manufacturing investments in anticipation of such policies.
For trucks and furniture, the tariffs could inflate costs for consumers and builders. The U.S. imports a growing share of cabinets and vanities from Vietnam, China, Mexico, and Malaysia, while heavy truck parts heavily rely on Mexico (28% of imports). Mexico and Japan’s auto associations have already protested, highlighting high U.S. content in their exports. The National Retail Federation warned that furniture duties alone could add hundreds to household renovation bills.
Broader Trade Tensions and Legal Questions
These tariffs build on Trump’s earlier actions, including 50% duties on Indian sectors tied to Russian oil purchases and reciprocal levies up to 50% on various partners. While Trump invoked national security—potentially under Section 232 of the Trade Expansion Act of 1962—critics question the stretch, especially for kitchen goods. The Commerce Department initiated related probes in April on pharma and trucks, and in March on lumber, though links to furniture remain unclear.
Trading partners are bracing for retaliation. The EU’s July deal capped pharma tariffs at 15%, but these new U.S. measures could upend that. Canada’s Chamber of Commerce flagged risks to health systems from drug price spikes. As one analyst put it, the pharma impact may be “somewhere between nebulous and negligible” due to existing U.S. footprints, but the cumulative effect on global supply chains could be profound.
With these duties set to activate in days, Wall Street and foreign capitals are on edge, wondering if Trump’s tariff blitz will spark a broader economic chill or finally “bring back” American jobs as promised.
