U.S. President Donald Trump announced on Thursday the imposition of a new package of steep tariffs on a range of imported goods, in an escalatory move aimed at bolstering domestic industry and encouraging foreign companies to invest within the United States.

Trump explained, in a post on his “Truth Social” platform, that starting October 1, a 100% tariff will be imposed on all pharmaceutical products carrying trademarks or patents, unless the manufacturing companies establish production plants inside U.S. territory.

Although the full scope of these measures remains unclear, Michael Wan, an economist at Japan’s MUFG Bank in Singapore, noted that the decision may not cover generic drugs, particularly those coming from countries such as India, which might be exempt from these tariffs.

The move has triggered international reactions. Australian Health Minister Mark Butler commented: “We purchase pharmaceutical products from the United States in far greater quantities than they buy from us. It is not in the interest of American consumers to impose higher prices on Australian exports to the U.S.” Australia exported pharmaceuticals worth $1.35 billion to the U.S. market in 2024.

In a parallel step, Trump also announced the imposition of a 25% tariff on heavy trucks manufactured outside the United States, arguing that the measure would “support American truck manufacturing companies.” The tariffs will affect major global firms such as Sweden’s Volvo and Germany’s Daimler, which compete with U.S. manufacturers in this sector.