A fresh wave of US tariffs threatened by Donald Trump has sent shockwaves across European industries, with truck makers, cabinet manufacturers, and pharmaceutical companies squarely in the administration’s sights. The most dramatic of these is a proposed 100% tariff on branded drugs, a move that has caused particular alarm in the United Kingdom.
The UK’s pharmaceutical sector finds itself in a uniquely vulnerable position, as it was not covered by a recent tariff agreement with the US that protected other industries like aerospace and steel. The British government has stated it is “actively engaging” with the US to address the “concerning” development, hoping to avert a crisis for a sector it deems “critical to our economy.”
For European automotive giants, the news of a 25% tariff on heavy-duty trucks was met with disbelief. The German auto trade body, the VDA, blasted the decision as “incomprehensible,” arguing it would disrupt supply chains, burden investment, and ultimately hurt the US economy. The market reacted swiftly, with shares in major manufacturers like Daimler Trucks and the Traton Group falling in the wake of the announcement.
Amid the widespread concern, some analysts are suggesting a more nuanced reality. The tariffs, particularly those on pharmaceuticals, may be designed to spare companies that have invested in US manufacturing. Global firms with existing or planned American factories, such as Roche and Novartis, have indicated they do not expect to be impacted. This suggests the policy is a strategic tool to onshore production rather than a blanket ban on imports.
The new tariffs also raise questions about the stability of existing trade agreements. While the EU believes its 15% blanket tariff deal provides an “insurance policy,” the US has opened a separate investigation into medical devices, hinting at future trade battles. The situation underscores the unpredictable environment facing global companies, where diplomatic efforts, like the UK’s recent state visit for Trump, provide no firm guarantee against sudden and damaging protectionist measures.