A bold move to “put America first”

US President Donald Trump has once again stirred global markets with a late-night announcement of punitive tariffs targeting pharmaceuticals, heavy trucks, and home furniture. The measures, which take effect October 1, represent the most aggressive trade action by the administration since last year’s wide-ranging tariffs on nearly all US trading partners.

Trump’s announcements, made via his Truth Social platform, underscore his commitment to “America First” protectionism. “We will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America,” he wrote, signaling a push to incentivize domestic drug production.

Trucks under fire

The president also imposed a 25% tariff on imported “heavy (big) trucks,” citing national security concerns. Brands affected include Sweden’s Volvo and Germany’s Daimler, which owns Freightliner and Western Star. These tariffs are designed to boost American manufacturers such as Peterbilt, Kenworth, Freightliner, and Mack Trucks.

Financial markets reacted immediately, with shares in affected European companies plunging in after-hours trading. Trump’s use of Section 232, a trade law that allows tariffs when imports are deemed a national security threat, is consistent with earlier actions targeting steel, aluminum, and other sectors.

Home renovation and furniture take a hit

The White House also unveiled tariffs on household goods. Kitchen cabinets, bathroom vanities, and associated fixtures will face a 50% tariff, while upholstered furniture will be hit with a 30% tariff. Last year, imports largely from Asia accounted for 60% of all furniture sold in the US.

Retailers such as Wayfair and Williams Sonoma, heavily reliant on imported furniture, saw shares tumble after the announcement. Analysts warn these tariffs could further stoke inflation in the US, potentially driving up costs for consumers across the country.

Protectionism vs. global trade

Trump’s tariffs reflect a stark departure from decades of US trade policy that emphasized open markets and import-dependent growth. “We are bringing manufacturing back to America,” Trump said in his Truth Social posts, framing the measures as a patriotic effort to protect jobs and national security.

Experts warn the new tariffs could escalate tensions with major trading partners, complicate supply chains, and spark retaliatory measures abroad. The global community is already watching closely, with uncertainty growing over how these new tariffs will interact with existing trade restrictions on Canada, Mexico, China, and other countries.

Social media reacts

Reactions across social media have been swift. Supporters praise the move as bold protectionism that defends American workers, while critics warn of higher consumer prices and renewed trade conflicts. Many European users highlighted the potential disruption for truck manufacturers and furniture exports.

While Trump has not clarified how these tariffs will integrate with existing measures, economists and global trade experts predict a turbulent October. The move reinforces the administration’s broader strategy: reshaping US manufacturing through aggressive protectionist policies, regardless of market pushback.

As the world braces for the economic ripple effects, consumers, businesses, and international partners alike face uncertainty over the cost of pharmaceuticals, imported trucks, and even kitchen cabinets in the months ahead.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com