Trump Announces New Tariffs on Pharmaceuticals and Heavy-Duty Trucks

BERLIN, Germany – On September 29, Germany expressed concern over potential new tariffs announced by the United States, which could affect pharmaceuticals and heavy trucks. During a press conference, a government spokesperson stated that U.S. President Donald Trump revealed these tariffs last week, leading to uncertainty in the trade landscape.

From October 1, a sweeping tariff policy will take effect, imposing a 100% levy on imports of branded or patented drugs unless companies establish manufacturing plants in the U.S. Additionally, a 25% import tax will be applied to heavy-duty trucks. Trump emphasized the need to protect U.S. manufacturers from a surge of these products from foreign nations.

The President wrote on his Truth Social platform, claiming that “the large scale FLOODING” of these products justified his tariff measures. U.S. businesses, however, have voiced opposition to the increase in tariffs, urging the White House to reconsider.

Neil Shearing, chief economist at Capital Economics, commented that the tariff on pharmaceuticals may not significantly impact the market due to exemptions for generic drugs and firms that build factories in the U.S. Many major pharmaceutical firms already manufacture or plan to manufacture within the country, he noted.

The European Federation of Pharmaceutical Industries and Associations is already calling for urgent discussions to mitigate any negative impact on patients stemming from Trump’s tariff plans. European officials indicated that pharmaceutical exports were protected by a prior agreement capping tariffs at 15%.

In response to the tariffs, a UK government spokesperson reassured that they were working to address industry concerns with U.S. authorities. GlaxoSmithKline and AstraZeneca are among British firms already investing in U.S. manufacturing.

The tariffs will also cover kitchen and bathroom cabinetry, furniture, and upholstered goods, aimed at leveling the playing field for American producers. Swedish furniture retailer Ikea indicated that these tariffs complicate business operations.

Trump’s tariff initiatives have been a hallmark of his administration, aiming to bolster U.S. manufacturing jobs. Despite backlash from various sectors, he has indicated plans for further industry-specific tariffs, including potential duties on semiconductors.

The forthcoming tariffs on trucks and pharmaceuticals fall within a broader strategy to reconfigure global trade dynamics, pressing companies to look inward for production. Industry leaders warn that while these tariffs may boost domestic production, they could also contribute to rising consumer prices as costs are passed along.

The impact of these new tariffs is expected to unfold in the coming weeks, affecting both domestic and international markets.