Trump Outlines New Tariffs on Drugs, Building Materials, and Trucks

President Donald Trump said he would impose 100% tariffs on imported pharmaceuticals if the companies aren’t currently building U.S. plants. (Dreamstime)

Key Points

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• President Trump announced 100% duties on imported pharmaceuticals unless companies are building U.S. production plants.
• New tariffs include 50% on imported kitchen cabinets and bathroom vanities, and 30% on upholstered furniture.
• A 25% tariff will be imposed on imported heavy trucks to protect U.S. manufacturers from foreign competition.

President Donald Trump has announced new tariffs on a number of products, including 100% duties on imported pharmaceuticals unless the companies that make them are currently building plants in the U.S.

The tariffs on imported drugs, certain building materials and furniture, and trucks take effect Oct. 1, less than a week from now, Trump said in a series of social media posts.

The tariffs on imported drugs apply to “any branded or patented” pharmaceutical product unless the company has either broken ground on a U.S. production facility or has one under construction, Trump said. If that is the case, no tariffs will be applied. The post didn’t refer to what authority Trump is using to apply such levies.

Trump also said the administration would slap 50% tariffs on imported kitchen cabinets, bathroom vanities, and associated products and 30% tariffs on imported upholstered furniture.

He says foreign suppliers have been “flooding” the U.S. market with these building and furnishing products, without offering evidence. He did cite national security as a reason for these levies, to protect the U.S. manufacturing process.

And Trump announced a 25% tariff on imports of “all heavy trucks,” saying it was to protect U.S. manufacturers from “unfair outside competition.”

The post nodded to U.S. companies including Peterbilt, Kenworth, Freightliner, and Mack. He said they “will be protected from the onslaught of outside interruptions,” and invoked national security purposes.

Write to Liz Moyer at liz.moyer@barrons.com