US President Donald Trump has announced sweeping new tariffs including a 100% duty on branded drugs and a 25% on heavy vehicles, effective from October 1. The move follows a series of previous tariffs on products such as steel and is seen as aimed at protecting domestic industries and national security. However, analysts have warned that it could add to pressure on costs and inflation.
Global markets reacted mixedly. Asian stocks, particularly pharmaceutical companies, fell while European stocks recovered from early losses. US investors have so far been largely unscathed, with BMO Economics saying that as long as the domestic economy remains stable, the market will remain relatively safe.
The pharmaceutical industry has long anticipated the tariffs. Big companies such as Roche and Novartis have already announced major investments in the US, while Ireland is accelerating drug exports to America. Irish chemical and pharmaceutical exports jumped more than 500% in the first seven months of 2025.
In addition to pharmaceuticals, Trump has also imposed tariffs on imported furniture and heavy vehicles. The move is expected to benefit US manufacturers but increase consumer costs and put pressure on foreign manufacturers such as Daimler Truck. Criticism came from Vietnam and the US Chamber of Commerce, which insisted that a major source of imports would not jeopardize national security.
