WASHINGTON, 25 September 2025 – U.S. President Donald Trump on Thursday announced a new round of tariffs on imported goods, including a 100% duty on branded pharmaceuticals and 25% on heavy-duty trucks, measures that will take effect October 1.
Tariffs have been a defining feature of Trump’s second term, with duties ranging from 10% to 50% on trading partners and targeted levies on a wide array of products. Businesses worldwide have struggled with the resulting uncertainty, weighing on investment decisions and global growth.
The latest tariffs, announced on Trump’s Truth Social account, also include a 50% levy on kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture.
“The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside Countries,” Trump wrote.
Pharma and Furniture Sectors Hit
Trump said the 100% tariff on branded or patented drugs will apply to all imports unless companies are already building U.S. manufacturing plants.
The Pharmaceutical Research and Manufacturers of America warned that tariffs could derail industry expansion: “Companies continue to announce hundreds of billions in new U.S. investments. Tariffs risk those plans.”
Asian pharmaceutical stocks dropped following the announcement, with Australia’s CSL hitting a six-year low, Sumitomo Pharma in Japan tumbling over 5%, and Hong Kong’s Hang Seng Biotech Index sliding 2.5%.
Furniture makers also came under pressure. An index tracking Chinese-listed furniture companies fell 1.1%. Imports of furniture into the United States reached $25.5 billion in 2024, with about 60% sourced from Vietnam and China, according to Furniture Today.
Trump has argued new furniture tariffs will “bring the Furniture Business back” to North Carolina, South Carolina and Michigan, where U.S. manufacturing employment in the sector has halved since 2000 to around 340,000 jobs.
Truck Tariffs and Inflation Risks
The 25% tariff on heavy-duty trucks is aimed at protecting U.S. makers such as Paccar’s Peterbilt and Kenworth and Daimler Truck’s Freightliner from “unfair outside competition.”
But the U.S. Chamber of Commerce warned against the move, noting that the top five import sources – Mexico, Canada, Japan, Germany and Finland – are all allies or close partners.
Mexico, the largest supplier of medium- and heavy-duty trucks to the U.S., said its exports average 50% U.S. content and opposed the new tariffs. Last year, the U.S. imported $128 billion in heavy vehicle parts from Mexico, or about 28% of total imports in the category.
Analysts say higher commercial vehicle tariffs could add pressure on transportation costs, potentially complicating Trump’s pledge to reduce inflation on consumer goods.
Broader Trade Strategy
The new measures also come as Trump leans on tariffs as a foreign policy tool to renegotiate trade deals and exert political leverage. Treasury Secretary Scott Bessent recently said Washington could collect $300 billion in tariff revenue by year-end.
The Trump administration has already opened dozens of national security probes into imports ranging from wind turbines and semiconductors to timber and critical minerals. This week, new investigations were launched into medical equipment, robotics and industrial machinery.
Japan said it is still assessing the implications of the new tariffs. Chief negotiator Ryosei Akazawa stressed that under existing agreements, Japan’s exports should not face tariffs higher than those imposed on other nations, thanks to most-favoured nation status.
Source: Reuters
