US President Donald Trump on Thursday announced sweeping new import tariffs, including a 100% duty on brand-name drugs and a 25% levy on heavy-duty trucks, sparking renewed trade uncertainty after a period of relative calm.

This latest attack, which Trump says is aimed at protecting the US manufacturing industry and national security, follows broad tariffs of up to 50% on trading partners and other targeted levies on imported products such as steel.

This is the latest turmoil for global businesses already struggling with complex supply chains, soaring costs, and consumer uncertainty caused by Trump's trade wars. These tariffs have cast a shadow over global growth, while the Federal Reserve has said they have also contributed to higher US consumer prices.

INVESTORS KEEP CALM AND CARRY ON

The new actions are seen as part of the Trump administration's shift to more established legal authority for its trade actions, given the risks associated with a Supreme Court case regarding the legality of its global tariffs.

This series of new announcements follows a relatively calm period after Trump reached trade deals with several major trading partners over the summer. These announcements could reignite the uncertainty that clouded the business outlook during the spring, when new import tariff announcements were almost weekly.

"If there are certain sectors where you see new announcements, of course, that's going to slow you down," Federal Reserve Bank of Richmond President Tom Barkin said on Bloomberg TV. "There are sectors with much more clarity, and sectors with much less clarity." Asian stocks fell, led by pharmaceutical companies, but European stocks recovered from early losses amid uncertainty about how broadly some of the tariffs will be applied.

Mixed U.S. equity futures indicate that investors are largely ignoring Trump's latest tariff announcements, BMO Economics said in a note.

"Until the U.S. economy shows more signs of strain from the trade war, investors seem to prefer to stay calm and move on," BMO said. Trump's announcement on Truth Social did not mention whether the new levies would add to existing national tariffs. Recent trade deals with Japan, the European Union, and the United Kingdom include provisions limiting tariffs on certain products, such as pharmaceuticals. (alg)

Source: Reuters