Trump slaps new US tariffs on broad range

WASHINGTON — US President Donald Trump on Thursday unveiled a new round of tariffs on a broad range of imported goods, including 100 percent duties on branded drugs and 25 percent levies on heavy-duty trucks, set to take effect next week.

The latest salvo, which Trump said was aimed at protecting the US manufacturing industry and national security, follows sweeping duties on trading partners of up to 50 percent and other targeted levies on imported products, such as steel.

The barrage has cast a pall over global growth and paralyzed business decision-making around the world, while the Federal Reserve has stated that it is also contributing to higher consumer prices in the US.

Trump's latest announcements on Truth Social did not mention whether the new levies would be in addition to existing national tariffs. However, recently struck trade deals with Japan, the EU, and the United Kingdom include provisions that cap tariffs for specific products, such as pharmaceuticals.

Tokyo said that it was still analyzing the potential impact of the new measures, which Canberra called "unfair" and "unjustified".

Trump also followed through on a pledge to "bring back" the US furniture business, saying that he would impose a 50 percent tariff on imported kitchen cabinets and bathroom vanities, as well as a 30 percent tariff on upholstered furniture. All the new duties take effect from Oct 1.

Stocks of pharmaceutical companies across Asia fell as investors reacted to the news, with Australia's CSL hitting a six-year low, Japan's Sumitomo Pharma tumbling more than 3 percent.

The new 100 percent tariff on any branded or patented pharmaceutical product will apply to all imports unless the company has already broken ground on building a manufacturing plant in the United States, Trump said.

The Pharmaceutical Research and Manufacturers of America, an industry group, said companies continue to announce hundreds of billions in new US investments. "Tariffs risk those plans," it added.

Trump has made the levies a key foreign policy tool, using them to renegotiate trade deals, extract concessions and exert political pressure on other countries.

His administration has played down the impact on consumer prices and touted tariffs as a significant revenue source.

Some economies have already struck deals with Washington.

The European Commission said on Friday it had secured a 15 percent ceiling on US tariffs on pharmaceuticals, acting as an insurance policy for European companies.

Japan has an agreement that its tariff rates will not exceed those of others, including the EU, Tokyo's trade negotiator Ryosei Akazawa said on Friday.

More than half of the $85.6 billion in ingredients used in medicines consumed in the United States are manufactured in the US, with the remainder sourced from Europe and other US allies, according to the US pharmaceutical trade group, which stated this earlier this year.

When it comes to furniture, imports to the United States reached $25.5 billion in 2024, a 7 percent increase from the previous year.

"Many of our members were shocked when we heard the news. I think the decision on the additional tariff is unfair," said Nguyen Thi Thu Hoai from the Dong Nai Wood and Handicraft Association, one of Vietnam's largest furniture clusters.

Higher tariffs on commercial vehicles could put pressure on transportation costs just as Trump has vowed to reduce inflation, especially on consumer goods such as groceries.

The US Chamber of Commerce earlier urged the department not to impose new truck tariffs, noting the top five import sources are Mexico, Canada, Japan, Germany and Finland, "all of which are allies or close partners of the United States posing no threat to US national security".

Agencies Via Xinhua