US President Donald Trump’s announcement of steep new tariffs on medicines and other goods drew pushback from some allies on Friday, with the EU claiming immunity for its pharmaceutical industry under an earlier trade deal.The announcement late on Thursday evening, which included a 100 percent levy on pharmaceuticals, is the harshest trade policy by the president since last April’s shock unveiling of “reciprocal” tariffs on virtually every US trading partner across the globe.Starting October 1, “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,” the Republican wrote on his Truth Social platform.The European Union said on Friday a July deal with Washington shielded the bloc from tariffs higher than 15 percent on its drug exports.”This clear all-inclusive 15 percent tariff ceiling for EU exports represents an insurance policy that no higher tariffs will emerge for European economic operators,” EU trade spokesman Olof Gill said.A European pharmaceutical industry group also warned that tariffs on medicines would “create the worst of all worlds.””Tariffs increase costs, disrupt supply chains and prevent patients from getting life-saving treatments,” Nathalie Moll, director general of the European Federation of Pharmaceutical Industries and Associations, said on Friday.Trump’s latest move was also criticized by US ally Australia, which exported pharmaceutical products worth an estimated $1.35 billion to the United States in 2024, according to the UN’s Comtrade Database.Australian Health Minister Mark Butler said on Friday that the higher rates were “not in the American consumers’ interest… particularly given the degree to which their exporters to Australia benefit from that free trade as well.”- Big rigs -In a separate post, Trump wrote of a 25 percent tariff on “all ‘Heavy (Big) Trucks’ made in other parts of the world” to support US manufacturers such as “Peterbilt, Kenworth, Freightliner, Mack Trucks and others.”Foreign companies that compete with these manufacturers in the US market include Sweden’s Volvo and Germany’s Daimler, which includes the Freightliner and Western Star brands.Shares in both companies were sharply lower in after-hours trading in Europe, although Volvo recovered when trading resumed.Trump said the truck tariffs were “for many reasons, but above all else, for National Security purposes!”The Trump administration launched a so-called Section 232 probe this year into imports of trucks to “determine the effects of national security,” setting the stage for Thursday’s announcement.Section 232 is a trade law provision that gives the president broad authority to impose tariffs or other restrictions on imports when they’re deemed a threat to national security.Trump has made extensive use of Section 232 to initiate investigations and impose tariffs on imported goods as part of his efforts to bolster US manufacturing and punish countries that he says are taking advantage of the US.The real-estate tycoon also targeted home renovation materials, writing “We will be imposing a 50% Tariff on all Kitchen Cabinets, Bathroom Vanities and associated products,” from October 1.”Additionally, we will be charging a 30% Tariff on Upholstered Furniture,” he added.According to the United States International Trade Commission, imports in 2022, mainly from Asia, represented 60 percent of all furniture sold, including 86 percent of all wood furniture and 42 percent of all upholstered furniture.Shares in home furniture retailers Wayfair and Williams Sonoma, which depend on these imported goods, tumbled in after-hours trading following the announcement.- Protectionist policies -The tariff onslaught will rekindle fears over inflation in the US economy, the world’s biggest.Trump is on a mission to rebuild manufacturing through protectionist policies that mark a complete reversal of modern US policy to maintain an open and import-dependent economy.His administration has imposed a baseline 10 percent tariff on all countries, with higher individualized rates on nations where exports to the US far exceed imports.Trump has also used emergency powers to impose extra tariffs on trade deal partners Canada and Mexico, as well as on China, citing concerns over fentanyl trafficking and illegal immigration.It was not yet clear how these new tariffs that kick in next week would factor into the existing measures.

Markets retreated on Friday as nagging uncertainty about the US interest rate outlook was compounded by data showing the world’s biggest economy faring much better than expected and fresh tariff warnings from President Donald Trump.Asian investors looked set to end a largely disappointing week on a negative note following the third loss in a row for Wall Street, with concerns that stocks are overvalued after a lengthy rally adding to the mix. Traders are also keeping a wary eye on Washington as lawmakers bicker over a funding package to keep the government running as a deadline approaches next week. Equity markets are seeing a pullback in buying after a months-long advance from April’s lows. The Federal Reserve cut rates last week, citing a weakening labour market but warning that more reductions were not nailed on.On top of that, the past week has seen top decision-makers at the bank offer varying views on the way forward, in light of stubbornly high inflation and soft jobs data, as well as concerns about the impact of Trump’s tariffs.Data on Thursday showed second-quarter US economic growth hit 3.8 percent — instead of the 3.3 percent first thought — as consumers spent more than expected. The reading marks the fastest quarterly expansion for nearly two years.The figures came ahead of Friday’s release of the Fed’s preferred gauge of inflation — the personal consumption expenditure (PCE) index — and next week’s nonfarm payrolls report.All three main indexes on Wall Street ended in the red, falling each day since hitting record highs on Monday.Tokyo, Hong Kong, Shanghai, Seoul, Wellington, Taipei, Mumbai, Singapore, Bangkok and Manila retreated, with Sydney and Jakarta edging up.The dollar held gains after surging on the growth figures.- Pharma takes a hit -Sentiment was also weighed by Trump’s new tariffs on pharmaceuticals, big-rig trucks, home renovation fixtures and furniture. From next Wednesday, “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”, Trump wrote on his Truth Social platform. He also threatened 25 percent levies on “all ‘Heavy (Big) Trucks’ made in other parts of the world”, for reasons including “National Security”.Asian pharma firms retreated, with Shanghai Fosun shedding around six percent and South Korea’s Daewoong off more than three percent. Japan’s Daiichi Sankyo and Astellas Pharma were also well in the red. Sydney-listed CSL shed nearly two percent.Sun Pharmaceutical Industries was a major loser in India’s Nifty 50 index and was down three percent, with other pharmaceutical stocks Cipla, Dr Reddy’s Laboratories, Lupin and Biocon all lower.Key industry player India “could be spared” from the levies for now, according to MUFG analyst Michael Wan.”It is still unclear how branded or patented pharmaceutical products will be defined, but our working assumption is that this will not incorporate generic drugs and pharmaceuticals shipped by the likes of India to the US,” he wrote in a note.A lack of agreement in Washington on a bill to avert a government shutdown was also on traders’ radar, with Democrats and Trump’s Republicans at loggerheads over the spending plans.”Republicans are seeking short-term extensions to funding at current levels, while Democrats have demanded more healthcare spending,” National Australia Bank’s Taylor Nugent said.”There remains no obvious exit ramp as the 1 October deadline to avoid a US government shutdown approaches,” he said.London, Paris and Frankfurt all rose.- Key figures at around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.9 percent at 45,354.99 (close)Hong Kong – Hang Seng Index: DOWN 1.4 percent at 26,128.20 (close)Shanghai – Composite: DOWN 0.7 percent at 3,828.11 (close)London – FTSE 100: UP 0.3 percent at 9,240.93 Euro/dollar: UP at $1.1671 from $1.1658 on ThursdayPound/dollar: UP at $1.3350 from $1.3335Dollar/yen: UP at 149.87 yen from 149.81 yenEuro/pound: UP at 87.43 pence from 87.42 penceWest Texas Intermediate: UP 0.4 percent at $65.23 per barrelBrent North Sea Crude: UP 0.2 percent at $69.56 per barrelNew York – Dow: DOWN 0.4 percent at 45,947.32 (close)