The United States has announced another round of tough tariffs on several imported products. The announcement was made on Thursday, with duties set to take effect from October 1. These new rules will hit heavy-duty trucks, branded medicines, and popular household furniture.
Major New Tariffs Announced
A 100% tariff has been placed on branded and patented medicines imported from outside the country. A 25% tariff will target heavy-duty trucks, while household products such as kitchen cabinets, bathroom vanities, and upholstered furniture will now face tariffs ranging from 30% to 50%.
The stated reason for these actions is the “flooding” of foreign products into the U.S. market. According to the administration, such imports are damaging local industries, including truck manufacturing, pharmaceuticals, and furniture making. The measures are also described as part of a larger strategy to use trade rules and tariffs as a key tool in both economic and foreign policy.
Impact on Global and Local Industries
The announcement had an immediate impact on global markets. In Asia, pharmaceutical company shares fell sharply. Japan’s Sumitomo Pharma saw its stock drop over 4%, while Australia’s CSL tumbled to its lowest level in six years. Furniture makers in China also saw their shares decline following the news.
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The 100% tariff on branded medicines comes with one exception. Companies that have already begun building manufacturing plants in the United States will not be subject to the new rule. The Pharmaceutical Research and Manufacturers of America, a leading industry group, warned that these tariffs could disrupt billions of dollars in planned investments in the U.S. pharmaceutical sector.
The truck industry is also set to face new challenges. Imports of medium and heavy-duty trucks, particularly from Mexico, have grown rapidly in recent years. Mexico has become the largest exporter of such vehicles to the U.S., with most of its production destined for the American market. The new tariffs could directly affect this trade.
Major U.S. truck makers, including Paccar’s Peterbilt and Kenworth brands, may benefit from the new duties. German manufacturer Daimler Truck’s Freightliner brand could also be shielded from some foreign competition. However, companies such as Stellantis, which builds heavy-duty Ram trucks in Mexico, might face higher costs when selling those vehicles in the U.S. Sweden’s Volvo Group, which is building a new $700 million heavy-truck plant in Monterrey, Mexico, could also feel the effects once production starts in 2026.
Furniture and household goods are another big target of the tariff list. The United States imported around $25.5 billion worth of furniture in 2024, most of it from Vietnam and China, according to Furniture Today, a trade publication. Employment in U.S. furniture manufacturing has fallen sharply since the year 2000, dropping by half to just about 340,000 workers. Supporters of the tariffs say the new duties could help revive industries in states like North Carolina, South Carolina, and Michigan, which once had thriving furniture production.
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Rising Concerns Over Costs and Trade Relations
The new tariffs are raising concerns about inflation. Higher costs on heavy trucks could impact transportation expenses across the economy. This may affect the prices of goods, including groceries, at a time when promises have been made to bring down living costs for families.
Mexico, one of the main partners in truck production and parts supply, has opposed the new measures. Officials there pointed out that most trucks exported to the U.S. from Mexico already contain about 50% American-made components, such as diesel engines. Last year alone, Mexico supplied nearly $128 billion worth of heavy vehicle parts to the United States, almost one-third of the total imports in that sector.
The U.S. Chamber of Commerce also opposed the truck tariffs, noting that the top sources of imports are close allies such as Mexico, Canada, Japan, Germany, and Finland. The Japanese Automobile Manufacturers Association added that many Japanese companies have already reduced truck exports to the U.S. while increasing local production.
Despite the criticism, the administration has defended the tariffs as necessary to protect U.S. jobs and industries from what it calls “unfair outside competition.” Officials also argue that tariffs bring in revenue, with Treasury Secretary Scott Bessent saying Washington could collect up to $300 billion in duties by the end of this year.