US President Donald Trump has reignited his global trade war, announcing sweeping new tariffs on pharmaceuticals, heavy trucks, home renovation materials, and furniture.
The measures, unveiled late Thursday on Trump’s Truth Social platform, represent the toughest trade action since his administration’s broad tariff hikes last April.
“Starting October 1, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump wrote.
The move is expected to hit major US allies, including Australia, which exported an estimated $1.35 billion worth of pharmaceuticals to the US in 2024, according to UN Comtrade data.
Australia’s Health Minister Mark Butler called the policy harmful.
“This is not in the American consumers’ interest… particularly given the degree to which their exporters to Australia benefit from that free trade as well,” Butler said Friday.
In another post, Trump announced a 25% tariff on all imported heavy-duty trucks, saying the measure was “for National Security purposes.”
The move aims to boost domestic producers such as Peterbilt, Kenworth, Freightliner, and Mack Trucks. European competitors Volvo (Sweden) and Daimler (Germany) saw their shares fall sharply in after-hours trading following the announcement.
Earlier this year, the Trump administration launched a Section 232 national security investigation into truck imports, paving the way for Thursday’s decision. Section 232 grants presidents broad powers to restrict imports deemed a national security threat.
Trump also targeted consumer goods, declaring a 50% tariff on kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture, effective October 1.
According to the US International Trade Commission, imports – largely from Asia – accounted for 60% of all US furniture sales in 2022, including 86% of wood furniture and 42% of upholstered pieces.
Retailers dependent on imports were hit immediately, with Wayfair and Williams Sonoma stocks tumbling in after-hours trading.
The tariffs have raised concerns about renewed inflationary pressures in the US economy. Economists warn the measures could drive up consumer prices while straining ties with trading partners.
Trump defended his aggressive stance as part of his mission to rebuild US manufacturing. His administration has already imposed a baseline 10% tariff on all countries, with higher rates on nations where exports to the US exceed imports.
Trump has also invoked emergency powers to penalize Canada, Mexico, and China, citing national security, fentanyl trafficking, and immigration issues.
It remains unclear how Thursday’s tariffs will align with the administration’s existing trade measures.
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