Trump slaps tariffs on more products

National security cited as US president targets pharmaceuticals, trucks and furniture

- DAVID SHEPARDSON

Freighters full of shipping containers at the port of Oakland, California, in August.

(REUTERS)

resident Donald Trump on Thursday unveiled a fresh round of punishing tariffs on a broad range of imported goods, including 100% duties on branded drugs and 25% levies on heavy-duty trucks, set to come into force next week.

The latest salvo, which Trump said was to protect the US manufacturing industry and national security, follows sweeping duties on trading partners of up to 50% and other targeted levies on imported products such as steel.

The barrage has cast a pall over global growth and paralysed business decision-making around the world, while the Federal Reserve has said it is also contributing to higher consumer prices in America.

Trump's latest announcements on Truth Social did not mention whether the new levies would stack on top of existing national tariffs. But recently struck trade deals with Japan, the EU, and the United Kingdom include provisions that cap tariffs for specific products like pharmaceuticals.

Tokyo said it was still analysing the potential impact of the new measures, which Canberra called “unfair” and “unjustified”

Trump also followed through on a pledge to “bring back” America’s furniture business, saying he would start charging a 50% tariff on imported kitchen cabinets and bathroom vanities and a 30% tariff on upholstered furniture. All the new duties take effect from Oct 1.

“The reason for this is the large scale ‘FLOODING ' of these products into the United States by other outside Countries,’ Trump wrote.

Stocks of pharmaceutical companies across Asia fell as investors reacted to the news, with Australia’s CSL hitting a six-year low, Japan's Sumitomo Pharma tumbling more than 3% and pharmaceutical indices in Hong Kong and India down more than 1%.