Trump Expands Tariff Net: Pharma, Furniture, and Heavy Trucks Hit as National Security Cited
In a fresh escalation of trade restrictions, US President Donald Trump announced on Friday that Washington will impose sweeping new tariffs on a range of imported products, citing “national security” concerns.
Starting October 1, 2025, the United States will implement a 100% tariff on branded or patented pharmaceutical products, a 50% tariff on kitchen cabinets, bathroom vanities, and related items, a 30% tariff on upholstered furniture, and a 25% tariff on heavy trucks.
The move comes amid a series of investigations launched under Section 232 of the Trade Expansion Act of 1962, which grants the US President the authority to raise tariffs if imports are deemed a threat to national security.
In his announcement on TruthSocial, Trump emphasized that pharmaceutical products will not face the tariff if the manufacturer is actively building a pharmaceutical plant in the US, with “building” defined as either breaking ground or being under construction.
Starting October 1st, 2025, we will be imposing a 100% tariff on any branded or patented pharmaceutical product, unless a company is building its pharmaceutical manufacturing plant in America. There will be no tariff if construction has started,” Trump stated.
Simultaneously, Trump justified the 50% tariff on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks by citing the “large-scale flooding” of these products into the United States from foreign countries.
He described this practice as “unfair” and emphasized that it threatens national security and the domestic manufacturing base.
Implications for India and the Pharma Sector
For India, the immediate impact of the pharmaceutical tariffs may be limited. India is the world’s largest producer of generic drugs, supplying nearly 20% of global demand.
However, top Indian pharmaceutical companies have increasingly focused on patented and novel drugs, attempting to climb the value chain. Trump’s move could affect ongoing government incentives under India’s Production-Linked Incentive (PLI) scheme, which targets high-value pharmaceutical segments.
The PLI Scheme for Pharmaceuticals, approved by the Union Cabinet in 2021 with a financial outlay of Rs 15,000 crore, covers the production of biopharmaceuticals, complex generics, patented drugs or those nearing patent expiry, gene therapy drugs, orphan drugs, complex excipients, anti-cancer drugs, and autoimmune medications.
The scheme is intended to run from FY 2022-23 to FY 2027-28, helping Indian companies scale up domestic production of high-value and export-oriented pharmaceuticals.
Expanding Use of Section 232 Raises Concerns
The Trump administration has increasingly relied on Section 232 to impose targeted tariffs, notably on steel, aluminum, and copper, and now on additional sectors including pharmaceuticals, semiconductors, timber, processed critical minerals, commercial aircraft and jet engines, polysilicon, wind turbines, and unmanned aircraft systems.
Unlike tariffs implemented under the International Emergency Economic Powers Act (IEEPA), which could face legal challenges in the Supreme Court next month, Section 232 tariffs enjoy stronger legal cover, as US courts have repeatedly declined to overturn such measures due to the broad “national security” justification.
India has also invoked national security in trade restrictions in the past, and at the WTO, the scope of such measures has been a matter of intense debate.
The ongoing and expanded use of Section 232 reflects Washington’s approach to selectively targeting imports, and for India, it underscores the vulnerability of labour-intensive sectors such as textiles, footwear, and marine products to these tariffs.
The 50% tariff on these products threatens jobs in key export-oriented industries, highlighting the need for Indian exporters to diversify markets and enhance domestic manufacturing capabilities.
Looking Ahead
While Section 232 tariffs are narrower than the sweeping IEEPA-based tariffs Trump previously employed, their impact on specific high-value and strategic sectors is significant. Companies and policymakers will need to carefully navigate these trade restrictions, balancing compliance with maintaining global competitiveness.
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