President Donald Trump announced a new wave of tariffs on Thursday, including a 100% levy on branded or patented drug imports from 1 October, unless a company is building a factory in the US.
The move could hit major pharmaceutical exporters from the UK, Ireland, Germany, Switzerland, and Japan. The UK alone shipped more than $6 billion (£4.5bn) worth of pharmaceutical products to the US last year, according to the UN.
Wall Street and European markets have already felt the strain. Jane Sydenham, investment director at Rathbones, described the sector as being on a “rollercoaster ride” amid tariff speculation, while Neil Shearing, chief economist at Capital Economics, suggested the real impact could be muted given exemptions and the industry’s US production footprint.
Trump also announced a 25% import tax on heavy-duty trucks, citing the need to protect American manufacturers such as Peterbilt and Mack Trucks from “unfair outside competition.” Industry groups, however, warn that many truck parts come from allies like Mexico, Canada, and Germany, making it “impractical” to fully localize production without raising costs.
In addition, kitchen and bathroom cabinets will face a 50% duty, while upholstered furniture will be hit with a 30% tariff starting next week. Trump argued the measures are necessary to counter the “flooding” of imports that he claims undermine US producers.
Mark McCarthy, Chief Revenue Officer at Basware, commented:
“Trade wars and tariff uncertainty introduce volatility into the global economy. For major enterprises, especially those with complex supply chains or international footprints, this creates hesitation around IT spending. CIOs and CFOs may want to delay large IT investments, reassess strategic priorities and scrutinize every dollar of spend.
Organizations are working on contingencies, but in a turbulent environment, smart enterprises don’t stop investing, they get more focused on their spending and look for greater ROI on every purchase. This means looking to drive even more cost efficiency, investing in areas to mitigate operational risk, accelerating automation to do more with less, and increasing agility and visibility over the tech stack.
Supply chains are not nimble as we saw during the pandemic, so CIOs and CFOs will also be considering suppliers that have the skills to handle the complex tax and tariff landscape. Combining technology solutions with tax compliance and skills will be vital in the near future as these tariffs come into effect.
Michael Joseph, Compliance Expert at Napier AI, commented:
“Tariffs create a breeding ground for financial crime. Fluctuating tariffs, while designed to serve economic and national security objectives, have created unintended consequences. As supply chains reorganize in response, new vulnerabilities for money laundering and other financial crimes have emerged. Our research shows that money laundering and terrorist financing cost the US economy over $600 billion per year on average.”
“For compliance professionals navigating today’s increasingly complex environment, adapting financial crime risk mitigation strategies is critical. Incorporating tariff policy changes into targeted risk assessments helps identify vulnerabilities tied to high-tariff jurisdictions and to commodities susceptible to misrepresentation. It also enables compliance teams to anticipate how recent tariff shifts might alter behaviour and trading patterns. The coming years will require increased vigilance, technological innovation, and cross-border collaboration to address these emerging threats. For compliance professionals, this environment represents not just a challenge but an opportunity to demonstrate the critical value of financial crime prevention in an increasingly complex global economy.”
The tariffs mark an escalation of the president’s protectionist trade strategy, following sweeping duties on more than 90 countries introduced in August and earlier levies on steel, aluminium, copper, and vehicle components.
Earlier this year, the US Chamber of Commerce urged the White House not to impose new tariffs, noting that many parts used in truck production are sourced “overwhelmingly” from countries like Mexico, Canada, Germany, Finland and Japan.
The organisation stressed that these nations are “allies or close partners of the United States posing no threat to US national security,” and highlighted that Mexico and Canada alone accounted for more than half of US imports of medium and heavy-duty truck parts last year. It warned that it was “impractical” to expect many of these parts to be sourced domestically, which would drive up costs for the industry.
The new tariffs favour domestic producers but are “terrible” for consumers as prices are likely to rise, said trade expert Deborah Elms from research firm Hinrich Foundation.