Trump Imposes High Tariffs on Pharmaceuticals and Heavy Trucks

Illustration of President Trump imposing high tariffs on pharmaceuticals and heavy trucks. (VOA)

[People News]President Donald Trump has launched a new round of tough tariffs on a series of imported goods, including imposing the maximum tariff on brand-name drugs and new tariffs on heavy trucks—all measures will take effect next week.

According to a Voice of America report, President Trump said on Thursday (Sept. 25) that starting October 1, he will impose a 100% import tax on pharmaceuticals, a 50% import tax on kitchen and bathroom cabinets, a 30% import tax on upholstered furniture, and a 25% import tax on heavy trucks.

The president posted on his Truth Social platform that he believes the tariffs imposed since earlier this year will help reduce the government budget deficit and boost U.S. manufacturing.

“Starting October 1, 2025, we will impose a 100% tariff on all brand-name or patented drugs, unless a company is building its pharmaceutical plant in the United States. ‘Building’ will be defined as ‘groundbreaking’ and/or ‘under construction.’ Therefore, if construction has already begun, those drugs will not be subject to tariffs. Thank you for your attention to this matter!” Trump wrote.

This administration launched a Section 232 investigation under the Trade Expansion Act of 1962 in April this year, examining the impact of pharmaceutical and truck imports on national security. The U.S. Department of Commerce also launched an investigation into logs and lumber in March, but it is unclear whether the furniture tariffs are a result of that investigation.

Domestic Manufacturing

Trump noted on Truth Social that the drug tariffs do not apply to companies that have already begun building factories in the U.S. It remains unclear how these tariffs will affect companies that already operate domestic facilities.

According to the U.S. Census Bureau, the U.S. imported nearly $233 billion worth of pharmaceuticals and medical products last year. Pharmaceutical manufacturers oppose the new tariffs, arguing that drugs have historically not been subject to tariffs. They urged the government to keep pharmaceuticals exempt, saying tax policy is more effective in increasing U.S. drug production.

White House officials said that earlier tariff threats this year prompted some large pharmaceutical companies, including Johnson & Johnson, AstraZeneca, Roche, Bristol Myers Squibb, and Eli Lilly, to plan production facilities in the U.S.

Trump said that foreign-made heavy trucks and their parts are harming domestic producers who need protection.

Many commercial truck manufacturers use factories in Mexico to produce heavy trucks for the U.S. market. Daimler Truck North America assembles some Freightliner brand trucks in Mexico. Freightliner is the leader in the North American heavy truck market, holding nearly 40% of the market share. In addition, Germany’s Traton Group also produces International brand heavy trucks in Mexico.

Reasons for the Tariffs

“The reason (for the new tariffs) is that other countries are flooding these products into the United States on a massive scale,” Trump wrote in his post. “This is a very unfair practice, but for reasons of national security and others, we must protect our manufacturing processes.”

Trump has consistently said that tariffs are critical for attracting companies to invest in domestic factories. He has dismissed concerns that importers will pass on the cost of tariffs to consumers and businesses through higher prices.

On Thursday, while signing the executive order at the White House, the president acknowledged that U.S. farmers have been hurt by the loss of soybean sales caused by tariffs on China.

He said that part of the tariff revenue will be shared with farmers affected by the trade war. He did the same thing during his first term when his tariff measures triggered retaliatory actions against the U.S. agricultural sector.

Meanwhile, the U.S. Supreme Court agreed this month to hear arguments in November on the Trump administration’s request to preserve its wide-ranging global tariffs. These tariffs are a key component of the president’s economic agenda. After lower courts issued adverse rulings, the tariffs will remain in place until the case is decided. △