Washington, September 26, 2025 — President Donald Trump has announced a sweeping set of new tariffs that will hit a wide range of imports, including pharmaceuticals, heavy-duty trucks, and household furniture. The latest duties unveiled on his Truth Social account are scheduled to take effect from October 1 and mark another major escalation in his administration’s trade agenda.
Under the new measures, branded and patented drugs will face a 100% tariff, while heavy-duty trucks will be hit with a 25% duty. Trump also revealed plans for a 50% tariff on kitchen cabinets and bathroom vanities and a 30% levy on upholstered furniture.
“These products are flooding the United States from outside countries,” Trump wrote, justifying the move as a way to shield American businesses from foreign competition.
Shockwaves Through Global Markets
The announcement rattled global markets, particularly in Asia. Pharmaceutical stocks plunged across the region, with Australia’s CSL hitting a six-year low, Japan’s Sumitomo Pharma sliding more than 5%, and Hong Kong’s Hang Seng Biotech Index dropping 2.5%. Chinese-listed furniture manufacturers also fell, with a sector index down 1.1% on Friday.
The pharmaceutical industry reacted swiftly, warning that such sweeping tariffs could undermine billions of dollars in planned U.S. investments. “Tariffs risk those plans,” said the Pharmaceutical Research and Manufacturers of America, which represents the sector.
According to Trump, the new 100% duty will apply to all branded drugs unless the manufacturer has already begun construction of a plant inside the United States.
Expanding Tariff Frontiers
The fresh round of duties highlights a shift by the Trump administration toward relying on well-established legal authorities, particularly as the Supreme Court reviews the legality of earlier global tariff measures. The White House has also launched multiple probes into imports of semiconductors, turbines, critical minerals, and industrial equipment to determine whether further restrictions are warranted.
Foreign governments are scrambling to assess the fallout. Japan, which has secured most-favored nation status for several pharmaceutical items, said it was studying whether the new levies conflict with existing agreements. “We are still analyzing the potential impact,” said Ryosei Akazawa, Tokyo’s chief trade negotiator.
Economic and Political Stakes
Trump has leaned heavily on tariffs as a tool of both economic protection and foreign policy leverage. Treasury Secretary Scott Bessent has projected that Washington could collect as much as $300 billion in tariff revenue by the end of the year.
But critics warn that higher import taxes risk adding fresh pressure to inflation, particularly with the 25% duty on heavy-duty trucks. Industry experts caution that the move could raise transportation costs just as consumers struggle with high prices on essentials such as groceries.
The U.S. Chamber of Commerce has already urged the administration to reconsider the truck tariffs, noting that most imports in this category come from close allies, including Mexico, Canada, Japan, and Germany. Mexico, the single largest supplier of heavy and medium-duty trucks to the U.S., argued that its exports are deeply integrated with American supply chains, with roughly half of the content in each truck sourced from U.S. manufacturers.
Tariffs and the American Jobs Pitch
Trump has repeatedly framed tariffs as a way to “bring industries back home,” pointing in particular to the struggling U.S. furniture sector. Imports of furniture totaled $25.5 billion in 2024, with about 60% coming from China and Vietnam. Employment in U.S. furniture and wood product manufacturing has halved since 2000, falling to around 340,000 workers.
In August, Trump promised new measures to “bring the Furniture Business back” to states like North Carolina, South Carolina, and Michigan regions once considered the heart of the industry.
While supporters see the tariffs as a bold attempt to revive domestic manufacturing, critics argue that the measures may ultimately raise prices for consumers and strain ties with key allies.
