US President Donald Trump announced on Thursday new tariffs that could reach 100% on pharmaceuticals, including trucks and furniture produced outside the United States.
The US president wrote on the Truth Social network that, starting October 1, "we will impose a 100% tariff on all branded or patented pharmaceutical products, unless the company builds a pharmaceutical plant in the United States."
Michael Wan, an economist at MUFG Bank in Singapore, emphasized that the definition of these drugs "remains vague," but "we are proceeding with the assumption that this will not include generic drugs shipped from countries like India, which may be exempt from this announcement."
Australia, which exported an estimated $1.35 billion worth of pharmaceutical products to the United States in 2024, commented on Trump's announcement. Australian Health Minister Mark Butler said on Friday, "We buy far more pharmaceutical products from the United States than (the Americans) buy from us. It is not in the interest of American consumers to charge higher prices on Australian exports to the United States."
In a separate post, Trump also announced a 25% tariff "on all heavy-duty trucks manufactured in other parts of the world." He believed this measure would support American truck manufacturers.
Among the foreign companies competing with American truck manufacturers are Swedish Volvo and German Daimler.
The US president explained that these tariffs on heavy trucks have "many reasons, but are primarily for national security purposes."
The US administration had previously announced in the spring that it had launched an investigation to determine whether importing trucks from abroad posed a threat to "national security."
Fearing inflation,
Trump also intends to impose tariffs on many furniture items.
He wrote on his social media account, "We will be imposing a 50% tariff on all kitchen furniture, bathroom sinks, and related products" effective October 1, and "a 30% tariff on upholstered furniture" made of fabric.
Figures from the United States International Trade Commission indicate that in 2022, imports, particularly from Asian countries, accounted for 60% of furniture sold, including 86% of all wood furniture and 42% of all upholstered furniture.
This new tariff campaign is fueling fears of inflation in the United States, the world's largest economy.
Donald Trump asserts that he wants to revive industries through protectionist policies, a radical departure from the usual US policy aimed at keeping the economy open.
The Trump administration imposed a 10% basic tariff on all countries, with much higher rates for some countries whose exports to the United States exceed their imports from that country.
The US president imposed additional tariffs, in particular, on major US partners such as Canada, Mexico, the European Union, and China. Negotiations with China on this matter are ongoing.
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