US President Donald Trump has announced heavy tariffs on foreign medicines, heavy trucks and household furniture.
President Trump announced on his social media platform “Truth Social” that a 100 percent tariff will be imposed on branded or patented medicines of companies not manufactured in the US.
The new tariff will be implemented from October 1. After this announcement, shares of major pharmaceutical companies in Asia, especially India, fell.
Donald Trump said that Indian pharmaceutical companies that set up their plants in the US will benefit from this new tariff exemption.
It should be noted that India exports medicines worth more than $ 10 billion to the US every year. South Korea will also be affected by this tariff.
Australia exported medicines worth about $ 1.3 billion to the US in 2024. It has also strongly criticized President Trump’s decision.
The European Union said that under the trade agreement reached in July, European pharmaceutical exports cannot be subject to tariffs exceeding 15%, which is an insurance policy for European companies.
Britain has also indicated that it will pressure the US government to obtain soft terms for pharmaceutical products.
Donald Trump added that a 25% tariff would be imposed on foreign heavy trucks to benefit American companies such as Peterbilt, Kenworth, Freightliner and Mack Trucks.
Shares of Volvo (Sweden) and Daimler (Germany) fell sharply in Europe after the decision.
Donald Trump defended his decision, calling it a step taken under the “national security” of the United States.
In addition, a 50% tariff will be imposed on home improvement materials and a 30% tariff on upholstered furniture.
According to statistics, 60% of furniture sold in the United States in 2022 was imported. Shares of domestic retailers We Fair and Williams Sonoma fell significantly after the announcement.
The Trump administration has already imposed tariffs of at least 10 percent on each country, while additional rates have been imposed on partners such as Canada, Mexico and China over concerns about national security, drug trafficking and illegal immigration.
It is not yet clear how the new tariffs will fit into existing policy measures.