US President Donald Trump faced resistance from some allies after announcing significant new tariffs on pharmaceuticals and other products. The European Union argued that its pharmaceutical industry was protected from higher tariffs based on a previous trade agreement.
The announcement, made late on Thursday, revealed a 100 percent tariff on pharmaceuticals, marking one of the toughest trade policies implemented by the president since his surprise introduction of reciprocal tariffs on various US trading partners last April.
Effective October 1, Trump stated on his Truth Social platform that a 100% tariff would be imposed on branded or patented pharmaceutical products unless the company is establishing its pharmaceutical manufacturing plant in the US.
The European Union asserted that a trade deal reached in July prevented tariffs exceeding 15 percent on drug exports to the bloc. Trump also mentioned a 25 percent tariff on heavy trucks manufactured outside the US to bolster American manufacturers like Peterbilt, Kenworth, Freightliner, and Mack Trucks.
Furthermore, Trump disclosed plans to impose a 50% tariff on kitchen cabinets, bathroom vanities, and related products starting October 1. He also mentioned a 30% tariff on upholstered furniture.