In an aerial view, brand new Volvo trucks are displayed at TEC Equipment on September 26, 2025 in Dixon, California. U.S. President Donald Trump announced a series of new tariffs on Thursday that will impose a 25 percent tariff on imported semi-trucks, a 50 percent tariff on bathroom vanities and kitchen cabinets, and a 30 percent tariff on upholstered furniture. (Photo by Justin Sullivan/Getty Images)
U.S. President Donald Trump has announced tariffs of 100 percent on pharmaceuticals along with new levies on trucks and furniture.
Trump’s latest announcement, issued on Sept. 25, said the proposed levies would include 50 percent tariffs on kitchen cabinets, bathroom vanities, and associated products, 30 percent tariffs on upholstered furniture, and 25 percent tariffs on heavy trucks, as well as 100 percent tariffs on branded and patented pharmaceuticals. The formal executive order has not been filed yet, so details of the tariffs are unknown.
According to Livio Di Matteo, an economics professor at Lakehead University, the impact of the new tariffs on Canada is difficult to gauge because it depends on how much is exempt under the United States–Mexico–Canada Agreement, which is not always clear-cut. For example, some products could qualify for partial exemptions under the agreement. However, export data for the affected categories can still provide a general indication.
Pharmaceuticals
For pharmaceuticals, Trump has repeatedly said he wants to see lower drug prices, and that the rest of the world would have to pay more for this. On Sept. 25, the U.S. president announced he would be imposing a 100 percent tariff on any branded or patented pharmaceutical product, unless the company is building their manufacturing plant in the United States.
In 2023, Canadian pharmaceutical exports to the United States accounted for a value of more than $8.7 billion and represented 3 percent of the United States’ total drug imports. According to a March 2025 study, a portion of those pharmaceuticals that have final production in Canada are worth an estimated $3 billion, and 25 percent tariffs on those drugs could increase the costs of more than 400 drugs by $750 million.
It is not yet clear what portion of Canada’s exports fall under the branded or patented category to be impacted by the new tariffs.
Heavy Trucks
Throughout 2025, the United States has placed a wide range of tariffs on Canada, including 50 percent tariffs on steel, aluminum, and copper, 25 percent tariffs on vehicles and auto parts, 10 percent tariffs on oil and potash, and 25 percent tariffs on Canadian exports not covered under the USMCA, which were increased to 35 percent in August.
While Trump had signalled his intent to impose further tariffs on semiconductors and pharmaceuticals, few had predicted he would announce 25 percent tariffs on heavy trucks, which would kick in on Oct. 1. Trump said this was being done to protect these vehicle manufacturers from “unfair outside competition.”
Canada exported about $5.4 billion worth of heavy trucks to the United States in 2024, while it exported just $44 million to the rest of the world. The states of Michigan, Minnesota, New York, Texas, Illinois, and California were the top destinations for Canadian heavy vehicles, accounting for $2.3 billion of that value.
By comparison, Canada exported a total of $7.4 billion in exports of vehicles for goods transport to the United States in 2024.
When the United States imposed 25 percent tariffs on vehicles and auto parts in April, it included a caveat where USMCA-compliant vehicles have 25 percent tariffs apply to only the non-U.S. content, as opposed to the whole vehicle. It is not currently known whether this same principle will apply to the tariffs on Canadian heavy trucks.
Furniture
Trump also announced that beginning on Oct. 1, there will be 50 percent tariffs on all kitchen cabinets, bathroom vanities, and associated products, and 30 percent tariffs on upholstered furniture. He said countries have been “flooding” these products into the United States.
In 2024, Canada exported around $8.2 billion in furniture to the United States, which also includes lighting signs and prefabricated buildings. According to U.S. Customs data, Canadian businesses sent around $544 million worth of upholstered furniture and around $600 million worth of kitchen cabinets to the United States in 2024.
Many of these pieces of furniture could be exempt from tariffs if they meet USMCA criteria.
This includes “rules of origin” categorization, which means an adequate percentage of the product is made or assembled in North America. These items are not subject to tariffs, as long as the importer makes a claim for preferential tariff treatment by filing a certification of origin.
The Department of Finance did not respond to The Epoch Times’ request for comment before press time.