Trump’s new trade move raises global concerns
The German government anticipates that the United States will impose a 15% tariff on pharmaceuticals and heavy trucks, according to a spokesperson during a routine press conference. The announcement follows a wave of sweeping new trade measures unveiled by President Donald Trump, reigniting international uncertainty.
Last week, the US administration introduced significant import tariffs, including a 100% duty on patented drugs and a 25% levy on heavy-duty trucks. These measures form part of Trump’s broader “One Big Beautiful Bill Act,” a legislative initiative that aims to favor US-manufactured goods while scaling back earlier global trade commitments.
White House reassures trade partners
In response to growing concerns among allies, a White House official clarified that the US intends to respect pre-existing trade agreements. Specifically, countries that have treaties with the US which cap pharmaceutical tariffs at 15% will continue to benefit from those reduced rates. This statement offered partial relief to partners like Germany, whose pharmaceutical exports to the US are substantial.
Despite the clarification, the initial announcement of the 100% tariff on patented medicines sent ripples through the global healthcare and automotive sectors. Germany, one of the world’s largest pharmaceutical exporters, fears the impact on its vital industries and broader EU trade relations with the US.
European industry watches closely
Heavy-duty trucks also fall within Germany’s key export categories to the United States, particularly vehicles manufactured by companies such as Daimler and MAN. The expected 15% rate — lower than the initially announced 25% — would still affect competitiveness and profitability across the sector.
Both the pharmaceutical and automotive industries are integral to Germany’s export-driven economy. The tariff changes could affect job security, investment planning, and long-term trade strategies for manufacturers deeply integrated into the US market.
Trade tensions may escalate
The move is the latest in a series of trade actions that reflect a shift toward economic nationalism in the US. Analysts warn that continued escalation could spark retaliatory measures from the EU and disrupt the delicate balance of global trade relations.
The German government has not indicated whether it plans to challenge the US tariffs through the World Trade Organization or pursue bilateral negotiations. For now, industries and governments alike remain in wait-and-see mode as the full implications of the tariffs unfold.
