US President Donald Trump has announced a fresh round of punishing tariffs on a range of imported goods, including pharmaceuticals, big-rig trucks, home renovation fixtures, and furniture, in a bid to bolster US manufacturing and revive his global trade war.
The tariffs, set to take effect on October 1, are the harshest trade policy by the president since last April’s shock unveiling of reciprocal tariffs on virtually every US trading partner.
Trump revealed that a 100% tariff will be imposed on branded or patented pharmaceutical products unless the company builds a manufacturing plant in the US. This move has been criticized by American ally Australia, which exported pharmaceutical products worth $1.35 billion to the US in 2024. Australian Health Minister Mark Butler expressed concerns that the higher rates are “not in the American consumers’ interest… particularly given the degree to which their exporters to Australia benefit from that free trade as well.”
In a separate announcement, Trump imposed a 25% tariff on heavy-duty trucks made outside the US to support domestic manufacturers like Peterbilt, Kenworth, Freightliner, and Mack Trucks. Foreign companies like Sweden’s Volvo and Germany’s Daimler, which owns Freightliner and Western Star brands, saw their shares plummet in after-hours trading in Europe. Trump justified the truck tariffs, citing national security concerns.
The president also targeted home renovation materials, imposing a 50% tariff on kitchen cabinets, bathroom vanities, and associated products, as well as a 30% tariff on upholstered furniture. According to the US International Trade Commission, imports account for 60% of all furniture sold in the US, with 86% of wood furniture and 42% of upholstered furniture coming from Asia. Shares in home furniture retailers Wayfair and Williams Sonoma tumbled in after-hours trading following the announcement.
The new tariffs are expected to rekindle fears over inflation in the US economy. Trump’s protectionist policies mark a complete reversal of modern US policy, which aimed to maintain an open and import-dependent economy. His administration has imposed a baseline 10% tariff on all countries, with higher rates on nations with significant trade surpluses with the US.
The tariffs on trucks and pharmaceuticals have sparked concerns about potential retaliatory measures from affected countries. The US Chamber of Commerce urged the department not to impose new tariffs, noting that top truck import sources like Mexico, Canada, Japan, Germany, and Finland are allies or close partners of the US, posing no threat to national security.
The latest tariffs are part of Trump’s broader efforts to renegotiate trade deals and exert pressure on other countries. It remains unclear how these new tariffs will factor into existing measures, but they are likely to escalate tensions in the global trade landscape.