Following the conclusion of reciprocal tariff negotiations with several countries, the U.S. has focused renewed attention on product-specific tariffs, enacting measures affecting patented pharmaceuticals and heavy-duty trucks as well as launching investigations into robotics, industrial machinery, and some medical devices.
U.S. enacts tariffs on heavy-duty trucks and patented pharmaceuticals; investigation launched into other products
After months of speculation, the U.S. enacted 100% tariffs on some pharmaceuticals, effective from October 1. The tariffs apply to patented and branded pharmaceutical products but exclude generic pharmaceuticals and pharmaceutical ingredients. Notably, the European Union and Japan will be excluded from the branded pharmaceutical tariffs as part of earlier reciprocal tariff deals. Companies that have broken ground on pharmaceutical manufacturing plants in the United States will also be excluded.
From November 1, the U.S. will also enact 25% tariffs on imported medium and heavy-duty trucks. Mexico is the largest exporter of heavy-duty trucks to the U.S., and the Mexican truck manufacturing industry is expected to be most impacted.
Additionally, the U.S. will enact a 10% tariff on imports of softwood timber and lumber, and 25% tariffs on kitchen cabinets, vanities and upholstered wood products effective from October 14. These measures are expected to have the most severe impacts on Canadian wood suppliers.
Lastly, the U.S. launched a tariff investigation into imports of robotics, industrial machinery, and certain consumable medical devices including syringes, sutures, catheters and gauze. The investigation started on September 2 and will conclude within 270 days before May 30, 2026. Official statements have not specified the reason for the tariff investigations or if any countries will be exempted.
While the Trump administration has yet to make an official announcement on semiconductor tariffs, additional details have emerged indicating that companies may have to produce an equal number of semiconductors in the U.S. and imported from abroad into the U.S. to avoid the threatened tariffs. If enacted, this policy could override previous statements indicating that companies with manufacturing plants in the U.S. would avoid tariffs. It is also unclear how the proposal would affect imported electronics products containing semiconductor chips. So far, the Trump administration has not released a finalized policy proposal for semiconductor tariffs or any potential exemptions.
United States to enact plan to impose fees on shipping vessels linked to China
On October 14, the U.S. will move forward with plans to enact fees on commercial vessels that are built, operated, or owned by Chinese companies. Since the policy was first announced in April, numerous shipping companies including CMA CGM and Mediterranean Shipping Company SA (MSC) have announced plans to swap Chinese-built or operated vessels on U.S.-bound routes with vessels from other countries at no additional cost for customers. The Chinese ocean shipping company China COSCO Shipping Corporation Limited will not charge surcharges on U.S.-bound services for the time being. It is unclear whether the new fees may end up changing ocean shipping pricing in the long-term.
In response, the Chinese government revised maritime transport regulations on September 28 that could allow the government to take retaliatory action against countries that enact measures discriminating against Chinese maritime vessels, operators, or crews. It is unclear what specific retaliatory actions could be taken under these circumstances, but measures could include additional port fees, restrictions on vessels entering or leaving Chinese ports, or denial of access to shipping data and services.
U.S. continues reciprocal tariff negotiations with South Korea and South Africa after finalizing E.U. agreement
Although the U.S. and South Korea previously established a trade framework agreement setting South Korea’s tariff rate at 15%, further talks have stalled. Sticking points include a U.S. push for a higher number of South Korean investments in the U.S. and a greater number of the investments to be provided in cash instead of loans. Korean public scrutiny towards the deal has also increased following U.S. immigration raids at a Hyundai Motor Co. site in Georgia, United States that affected South Korean nationals. Amid these tensions, it is unclear when the U.S.-South Korea trade deal will be finalized.
The U.S. has also continued negotiations with South Africa. Initially, South Africa and the U.S. could not reach a trade agreement, and the U.S. enacted a 30% reciprocal tariff in response. However, on September 26, South African officials indicated that a draft agreement had been reached and that South Africa was now in the process of clearing it with relevant government agencies. Full details of the agreement have not been disclosed, but South African offers to the U.S. could include further opening its market for American chicken and pork products and committing to more purchases of American liquified natural gas. It is currently unknown when the deal is expected to be finalized.
Following the previous round of U.S.-China talks held in Madrid, Spain in September, no further bilateral talks have been scheduled between the U.S. and China. However, President Trump confirmed he plans to meet with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation forum, which will be held from October 31 to November 1. President Trump has announced that he plans to raise issues related to China’s refusal to purchase American soy products at the upcoming meeting. President Trump also indicated that he plans to visit China in early-2026 and that President Xi plans to visit the U.S. later in 2026.
On September 25, the U.S. formalized its trade deal with the E.U. As established in the previous framework agreement, the U.S. will keep tariffs on the E.U. at 15% and will cap tariffs on automobiles, generic pharmaceuticals, and aircraft and aircraft parts at 15% regardless of current or future sector-specific tariff rates. In a separate measure, the European Commission proposed a plan to implement tariffs of 25% to 50% on Chinese steel and steel products amid concerns about overcapacity in the Chinese steel market. It is unknown when this proposal could be enacted.
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