Trump Announces Broad Tariffs on Drugs, Trucks and Furniture

President Donald Trump on Thursday announced a broad set of new tariffs on imported pharmaceuticals, kitchen and bathroom cabinets, upholstered furniture, and heavy trucks, the latest step in a sweeping tariff agenda that has roiled global markets and touched various sectors of the economy. The administration said the measures would take effect on October 1, 2025, and would impose a 100% tariff on branded or patented pharmaceutical products, a 50% tariff on kitchen cabinets and bathroom vanities, a 30% tariff on upholstered furniture, and a 25% tariff on heavy trucks.

The administration signaled that exemptions would apply in at least some cases. Notably, products for which companies are actively building manufacturing plants in the United States would be exempt, according to the president’s remarks. In a post, Trump said: "Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America. There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started." That emphasis on domestic investment could blunt the impact of the levy on several major drugmakers that have pledged billions toward U.S. production in response to tariff threats.

Beyond brand-name drugs, the administration suggested that generics—constituting roughly 90% of prescriptions in the United States—could be exempt or less affected, since many rely on active ingredients produced abroad but distributed at lower cost domestically. The announcement also comes as European and other officials have signaled they would resist any broad tariff escalation on pharmaceuticals, with the European Commission indicating tariffs on EU exports could stay near the previously imposed 15% level in many cases. Japan has also indicated it expects favorable treatment relative to other countries, citing earlier statements about tariff parity for pharmaceuticals. Analysts cautioned that even with exemptions, the practical impact on consumer prices remains uncertain, given the extensive supply chains and the substantial domestic presence of major drugmakers.

On the furniture side, the tariffs target a sector already under pressure from earlier rounds of duties. The White House said there would be a 50% tariff on all kitchen cabinets and bathroom vanities, and a 30% tariff on upholstered furniture, effective Oct. 1, 2025. Industry data show furniture prices climbed in recent months as a result of prior tariffs and supply-chain disruptions. The Bureau of Labor Statistics reported that overall furniture prices were 4.7% higher in the most recent period than in August 2024, with living and dining room furnishings up by about 9.5% over the past year. The United States imports a large share of its furniture: about 60% of all furniture sold in 2022, including 86% of wood furniture and 42% of upholstered pieces, came from Asia.

Heavy trucks were also priced into the plan, though the impact may be more muted. The administration proposed a 25% tariff on all heavy trucks manufactured outside the United States, arguing a need to shield American truck manufacturers from unfair competition. But industry groups note that most heavy-duty tractors used by U.S. carriers are made in the United States or in neighboring Mexico, with only limited non-North American imports from other countries. The American Trucking Association has pointed to Mexico as the primary source of imported heavy-duty tractors, suggesting that the margin for foreign suppliers may be smaller than in other sectors.

The package drew immediate reaction from economists and policy researchers. Kimberly Clausing, a tax-law and policy professor at the University of California, Los Angeles, said tariffs often complicate supply chains and can make U.S. manufacturing more difficult even when the stated aim is to boost domestic production. “If you look at job creation in 2025, it’s been mostly in sectors like government and healthcare and leisure and travel, not in manufacturing. And in fact, manufacturing job growth has been either weak or declining in 2025,” Clausing said. She added that the practical outcomes depend on how broadly exemptions are defined and how quickly manufacturers adjust to new costs and protections. Analysts note that the impact on consumer prices will hinge on how much of the tariff burden is passed along and how much is absorbed by producers through efficiency gains or existing inventories.

The new tariffs come as part of a broader, ongoing trade stance that has sought to recalibrate global supply chains and domestic production incentives. While the administration frames the policy as a tool to safeguard national security and bolster U.S. manufacturing, economists caution that higher import costs could translate into higher prices for consumers and downstream sectors, potentially affecting inflation dynamics and household budgets in the near term. The ultimate effect will depend on exemptions, the pace of domestic capacity expansion, and how trading partners respond in terms of retaliation and new concessions. As markets assess the implications, businesses across pharmaceuticals, furniture, and trucking are likely to adjust procurement strategies, pricing, and investment plans in anticipation of the coming changes.