President Donald Trump’s tariff campaign is far from over.
On Thursday evening, Trump announced on Truth Social that a fresh flurry of tariffs would start on October 1.
According to Trump’s post, the US will impose 100% duties on imported branded or patented pharmaceuticals, 25% tariffs on heavy-duty trucks, and new tariffs on home goods, including kitchen cabinets and upholstered furniture.
“The reason for this is the large-scale ‘flooding’ of these products into the United States by other outside Countries,” Trump wrote. “It is a very unfair practice, but we must protect, for National Security and other reasons, our Manufacturing process.”
The president posed on Truth Social that the pharmaceuticals-focused tariffs will apply to companies that are not building plants in the US.
“‘IS BUILDING’ will be defined as, ‘breaking ground’ and/or ‘under construction,'” he posted. “There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter!”
It is unclear whether these tariffs will be imposed under emergency powers or if the White House has completed Section 232 investigations to implement tariffs on the grounds of national security.
Trump’s plan to raise tariffs seems unaffected by increased inflation in August and lawsuits against his existing tariffs. According to data released by the Bureau of Labor Statistics in August, the price of the “food at home” category saw the largest monthly increase since August 2022. The consumer price index, which measures average prices excluding food and energy, also rose 3.1% in the same month.
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The White House did not immediately respond to a request for comment.
Trump’s announcement threw a damper on the markets, with Asian pharmaceutical stocks falling early in the global trading day.
Japan’s Topix Pharma Index was 1.6% lower at 12:12 p.m. ET on Friday. Sumitomo Pharma, Daiichi Sankyo, and Chugai Pharmaceuticals were among the biggest losers, falling 5.3%, 2.4% and 4.7% respectively.
South Korean pharma stocks also fell, with Samsung Biologics and SK Bio Pharmaceuticals down 1.9% and 3.8%, respectively.
In Hong Kong, the Hang Seng Shanghai-Shenzhen-Hong Kong Innovative Drug Select Index tumbled as much as 3.3%. Alibaba Health Information Technology was down 2.8%.
Markets in India — a major generic drug producer — also fell, with the Nifty Pharma Index trading 2.6% lower.
