New US Tariffs on Drugs, Trucks, and Furniture: Implications for Oman’s Importers and Business Landscape
US President Donald Trump Unveils New Import Tariffs
On Thursday, US President Donald Trump announced significant new import tariffs, including 100% duties on branded pharmaceuticals and 25% levies on heavy-duty trucks, set to take effect next week.
Trump described these measures as essential for protecting the US manufacturing sector and national security. This announcement follows earlier tariffs imposed on various trading partners, reaching up to 50%, and targeted levies on products such as steel. The developments add to the challenges global businesses are facing, exacerbating supply chain disruptions, rising costs, and consumer uncertainty caused by ongoing trade tensions. The Federal Reserve noted that these tariffs are contributing to increased consumer prices in the US and casting a shadow over global economic growth.
In response, Asian stock markets declined, particularly among pharmaceutical companies. However, European shares recovered from initial losses amid uncertainty regarding the scope of the new tariffs. Mixed signals from US equity futures suggested that investors were largely unfazed by Trump’s latest tariff announcement, according to a note from BMO Economics.
BMO stated, "Until the US economy shows more signs of stress from the trade war, investors seem content to keep calm and carry on." Trump did not clarify whether the new tariffs would be added to existing national tariffs. Recent trade agreements with Japan, the EU, and the UK included stipulations to cap tariffs on specific products like pharmaceuticals.
A preliminary non-binding trade agreement between the EU and the US aimed to limit tariffs to 15%. However, Trump has yet to formally sign an executive order to confirm this agreement. The European Commission remarked on Friday that the terms were clear, establishing an all-encompassing 15% tariff ceiling. Japanese trade negotiator Ryosei Akazawa noted that Japan has a similar agreement ensuring its tariff rates will not exceed those applicable to the EU.
Trump specified that the 100% tariff on branded drugs would only be enforced on companies that have not yet established manufacturing facilities in the US. Numerous pharmaceutical companies have pledged significant investments in US operations, with Roche recently highlighting that one of its US units has started construction on a new facility. Rival drug company Novartis, which has also committed to substantial investment in the US, did not respond to requests for comment.
Anticipating such tariffs, Ireland, where many American-owned pharmaceutical factories operate, has increased its exports to the US, with chemical and pharmaceutical products soaring by 536% year-on-year to $27.9 billion in the first seven months of 2025, according to the Central Statistics Office of Ireland.
Furthering his agenda, Trump reiterated his commitment to revitalizing the US furniture manufacturing industry by introducing a 50% tariff on imported kitchen cabinets and bathroom vanities, and a 30% tariff on upholstered furniture. These tariffs will become effective on October 1. This move is seen as part of the Trump administration’s transition to more established legal foundations for its trade actions, given the ongoing legal challenges surrounding his global tariff policies.
This week, Trump also initiated investigations into the national security impacts of personal protective equipment, medical supplies, robotics, and industrial machinery. In the past, he has imposed tariffs on steel, aluminum, light-duty vehicles, and copper citing national security.
According to the US pharmaceutical trade group, over half of the $85.6 billion in ingredients for medicines used in the US are produced domestically, while the rest is sourced from Europe and other allies. In 2024, furniture imports to the US amounted to $25.5 billion, a 7% increase from the previous year, with around 60% originating from Vietnam and China, as reported by Furniture Today.
Nguyen Thi Thu Hoai from Vietnam’s Wood and Handicraft Association expressed concerns about the additional tariff, stating that many in the industry found the move unexpected and unfair. Since 2000, employment in US furniture and woodworking sectors has declined by about half, now at approximately 340,000.
Inter IKEA has indicated that about 10% of IKEA products sold in the US are manufactured in North and South America. The increased tariffs on commercial vehicles could drive up transportation costs at a time when Trump is aiming to curb inflation, particularly affecting consumer goods like groceries. The new heavy-duty truck tariffs are expected to benefit American companies such as Paccar-owned Peterbilt and Kenworth, as well as Freightliner, while shares of German truck manufacturers Daimler Truck and Traton fell following the announcement.
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الأخيرة sweeping import tariffs announced by the Trump administration create both فرص و المخاطر for businesses in Oman. As global supply chains face disruptions, Omani exporters, especially in pharmaceuticals and manufacturing, may find markets opening in the U.S. due to shifting trade dynamics; however, the increased costs on heavy-duty vehicles could pressure transportation sectors and inflate prices domestically. Smart investors should consider reevaluating their supply chains and seeking الشراكات الاستراتيجية to mitigate the impacts of these tariffs while positioning themselves in growing sectors less affected by U.S. policies.
