President Trump announced new tariffs on pharmaceuticals, heavy trucks, and furniture, including a 100% duty on patented drugs, with some exemptions.
Thursday’s move is one of Trump’s new industry-focused duties and shows the rapid expansion of his tariff regime. While the president has long previewed the pharma tariffs, the other goods represent new trade targets.
The new tariffs range from 30% to 100%. Exceptions for pharmaceuticals apply if the producer is building a manufacturing plant in the US or if the country has a trade agreement that covers drugs, according to the White House.
The US is also planning to ask chipmakers to manufacture at home as many chips as their customers import in a bid to curb reliance on foreign supply. The Trump administration would levy tariffs on firms that do not maintain a 1:1 ratio over time, a report said.
Earlier in the week, Trump floated using revenue the US has accrued from his tariffs to offer bailouts to farmers struggling with the early effects of the duties.
Trump said farmers are, “for a little while, going to be hurt until the tariffs kick into their benefit.”
It’s unclear what mechanism the administration would use to provide relief to farmers, and it could run into issues with a looming Supreme Court review of the tariffs. An unfavorable ruling to the administration, which would follow lower court decisions, could force the administration to refund billions of dollars of that revenue.
Elsewhere, the US and China are reportedly in the final stages of negotiations for a “huge” Boeing (BA) aircraft deal that could end up as a “centerpiece” of a broader trade agreement.
The US and China have made progress toward various contours of a broader deal following a call between Trump and China’s President Xi Jinping last week. Trump said after that call that the countries had reached an agreement to spin off the TikTok app in the US, with the White House later naming Oracle (ORCL) as part of the consortium of investors.
Trump said the two leaders plan to conduct a series of meetings in the coming months, as Yahoo Finance’s Ben Werschkul reported.
Read more: What Trump’s tariffs mean for the economy and your wallet
Here are the latest updates as the policy reverberates around the world.
LIVE 1919 updates
Trump’s new push: He is ‘never going to be done with tariffs’
President Trump’s announcement that he will impose tariffs on pharma imports, which includes a 100% duty on patented drugs, unless the producer is building a manufacturing plant in the US. Those tariffs will come alongside duties on heavy trucks, kitchen cabinets, and furniture items.
Trump posted on Truth Social that the tariffs would come into effect on Oct. 1, 2025.
Trump’s post was one of several that focused on industry-specific tariffs. Imported heavy trucks will be subject to a 25% duty, kitchen cabinets and bathroom vanities will be hit with a 50% levy, and upholstered furniture imports will be taxed at 30%.
This latest move from Trump is a sign of the rapid expansion of his tariff agenda. Both markets and analysts have already started to react.
Bloomberg News reports:
Trade Representative Maros Sefcovic said on Thursday that European automakers are set to save up to $700 million a month now that the EU-US trade deal is in place.
AP reports: