US President Donald Trump has announced sweeping new tariffs targeting pharmaceuticals, heavy trucks, and home renovation materials, in what analysts describe as his harshest trade action since last April’s global tariff rollout.
In a late-night statement on Truth Social, Trump declared that starting October 1, the US will impose:
100% tariffs on branded or patented pharmaceuticals unless companies manufacture them domestically.
25% tariffs on all heavy trucks made outside the United States, citing national security.
50% tariffs on kitchen cabinets, bathroom vanities, and related products.
30% tariffs on upholstered furniture imports.
Global backlash and market impact
The announcement immediately rattled global markets. Shares of Volvo and Daimler, European truck manufacturers competing in the US, plunged in after-hours trading.
Home retailers Wayfair and Williams Sonoma, reliant on imported furniture, also saw sharp declines.
Australia, a key exporter of pharmaceuticals to the US, condemned the move.
Health Minister Mark Butler argued that the tariffs “are not in the American consumers’ interest,” warning of higher drug costs.
Section 232 probe and protectionist push
Trump’s administration earlier launched a Section 232 probe into truck imports to assess national security risks.
The law gives presidents wide latitude to restrict imports deemed harmful to US security.
Trump has repeatedly used Section 232 to justify tariffs, framing them as tools to revive American manufacturing and punish trade partners he accuses of exploiting the US.
The new tariffs add to an already aggressive trade agenda that includes a baseline 10% tariff on all imports and higher rates on countries such as China, Canada, and Mexico.
Inflation fears resurface
Economists warn the tariffs could fuel inflation, raising costs for US consumers on medicine, vehicles, and household goods.
Imports account for 60% of all US furniture sales, including 86% of wood furniture and 42% of upholstered furniture, according to the US International Trade Commission.
Despite the risks, Trump defended the measures as necessary.
“This is for many reasons, but above all else, for National Security purposes,” he said of the truck tariffs.
The move underscores Trump’s broader protectionist strategy, which reverses decades of US trade policy built on globalization and open markets.
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