What to Know: Trump’s New Tariffs on Pharma, Furniture and More

In a sweeping move effective 1st October, President Donald Trump has announced a fresh slate of high tariffs targeting a broad array of imported goods, ranging from branded pharmaceuticals to furniture and household fixtures.

Among the most striking measures is a 100 per cent duty on imports of branded drugs. Heavy trucks will face a 25 per cent tariff, kitchen cabinets and bathroom vanities will be subject to 50 per cent, and upholstered furniture will carry a 30 per cent duty. These are among the most aggressive tariff levels seen in recent United States trade policy.

Despite the steep rates, existing trade agreements may limit their reach. The United States has binding arrangements with the European Union, the United Kingdom and Japan that impose ceilings on tariffs for certain strategic goods, including cars, semiconductors and pharmaceuticals. For example, under the US–EU agreement the maximum duty on autos, parts, drugs and semiconductors is capped at 15 per cent. The US–Japan treaty also mandates that compound or special duty rates be treated identically to those applied to EU goods. This means that many imports from Europe, Britain or Japan may not be affected beyond existing thresholds.

Relations with China complicate matters further. The United States already applies a 30 per cent tariff on many Chinese products, with Beijing reciprocating at 10 per cent on American goods. It remains unclear whether Trump’s new measures will be stacked on top of these existing tariffs or replace them, as no official clarification has been issued. The US imports around $25.5 billion worth of furniture annually, with about 60 per cent coming from China and Vietnam, making the sector particularly vulnerable.

The timing of this escalation coincides with a major legal challenge. The US Supreme Court has agreed to hear arguments on the legality of Trump’s broader tariff powers. The Court accepted the case on 9 September and oral arguments are scheduled for 5th November. Should the Court rule against the executive branch’s authority, enforcement of some of the new tariffs may be delayed or struck down.

Observers will be watching closely for clarification from the administration on whether the tariffs stack on top of prior rates, particularly for Chinese goods. They will also monitor whether trade partners invoke dispute mechanisms for tariffs that exceed treaty caps, as well as the Supreme Court’s November ruling, which could redefine the scope of presidential authority on tariffs. Meanwhile, industries reliant on imports, from pharmaceuticals to furniture, are bracing for significant disruption.

Source: Reuters