US Slaps Tariffs on Branded Drugs, Trucks, and Kitchen Cabinets

U.S. President Donald Trump announced a new set of tariffs on Thursday, including a 100% import tariff on branded and patented drug imports starting October 1, unless companies build factories in the United States. The announcement also included a 25% tariff on heavy-duty trucks, a 50% tariff on kitchen cabinets, and a 30% tariff on upholstered furniture, all of which are set to take effect next week.

🇺🇸 Flooding America: On Thursday, Trump wrote on Truth Social that the tariffs were needed due to the large-scale “flooding” of these products into the United States from abroad, arguing they were necessary to protect American manufacturers.

🚫 Hit List: The new tariffs could impact leading drug exporters, including the UK, Ireland, Germany, Switzerland, and Japan. Britain alone shipped more than $6 billion worth of pharmaceuticals to the U.S. last year, according to UN data.

⏭️ Next in Line: The U.S. Commerce Department has initiated Section 232 national security probes into imports of medical equipment, PPE, robotics, and industrial machinery, examining the reliance on foreign supply chains, particularly those from China. The investigations could pave the way for new tariffs on a broad range of goods deemed critical to U.S. security.

Neo Performance Materials has launched Europe’s first large-scale rare earth magnet production facility in Estonia, as the continent seeks to reduce its near-total dependence on Chinese supply chains. The Canadian company will begin production at the $75 million plant.

🤝 Team Work: The new facility is backed by up to €18.7 million from the EU’s Just Transition Fund and a US$50 million credit line from Export Development Canada.

🧲 Magnet Production: The new plant will initially produce 2,000 tons a year, scaling up to 5,000 tons. According to reports, the company has already signed supply contracts with German auto suppliers Schaeffler and Bosch.

Why does this matter? The EU depends on China for 98% of its rare earth magnets, leaving industries exposed to supply shocks. Beijing’s export controls in April underscored the risk and disrupted shipments. Brussels has set a goal to localize 40% of critical raw material processing, with the Estonia plant marking a first step.

Global shipowners continue to book new vessels from Chinese yards even as the U.S. prepares to levy steep port fees on China-built ships, a report from the Center for Strategic and International Studies showed.

Chinese yards secured 53% of global orders by tonnage in the first eight months of 2025, roughly matching pre-investigation levels despite Washington’s efforts to counter Beijing’s maritime dominance. CSIS noted that shipping lines appear to be continuing “business as usual.” Mediterranean Shipping Company has ordered 12 new containerships from China since the fees were announced in April.

The new fees, set to take effect on Oct. 14, will apply to ships built in China or operated by Chinese companies and could exceed $1 million for the largest container vessels, with annual increases projected through 2028. Analysts say carriers like Hapag-Lloyd, Maersk, and CMA CGM have shifted China-built ships off U.S. routes to minimize exposure.TLDR

The Trump administration is preparing a new requirement for semiconductor makers that would force them to manufacture as many chips in the U.S. as their customers import from overseas producers, according to a Wall Street Journal report.

The proposed rule would effectively establish a 1:1 ratio between domestic and imported output. Companies that fail to meet the standard over time could face tariffs, the report stated.

Last month, U.S. President Donald Trump announced the plan to impose a 100% tariff on imported semiconductors, exempting companies that already produce chips domestically or have pledged to build in the U.S. The plan reflects Washington’s broader push to bolster U.S. chip manufacturing, following years of supply chain disruptions and escalating geopolitical competition over advanced technology.

United States Antimony Corporation has secured a five-year, $245 million contract from the Pentagon’s Defense Logistics Agency to supply antimony ingots for the national defense stockpile. The agreement positions USAC, which operates the only two antimony smelters in North America, as the sole-source supplier for the material.

Antimony is used in munitions, flame retardants, batteries, and other defense applications, and has been highlighted as a strategic vulnerability due to the U.S.'s dependence on foreign sources, particularly China. Deliveries from USAC’s domestic facilities are set to begin this week.

USAC stated that the contract resulted from months of negotiations and marks an expansion of its partnership with the Department of Defense, which accelerated in late 2024.

Truckload shipping slowed in August, with both freight volumes and rates edging down, according to DAT Freight & Analytics. The decline came after many importers moved goods earlier in the summer to avoid new tariffs, leaving less freight to move later.

DAT’s index showed van loads down 8% from July and 7% compared to the same period last year. Refrigerated loads slipped 6% month-to-month but were slightly higher than a year earlier, while flatbed loads also dropped 6% but managed a 2% annual gain.

Spot rates followed the same trend, averaging $2.03 per mile for vans, $2.41 for reefers, and $2.49 for flatbeds. Contract rates also eased across various equipment types, signaling a softening of the market.

DAT’s chief analyst, Ken Adamo, said tariffs, high interest rates, and economic uncertainty continue to weigh on demand. He noted that contract rates have been mostly flat for 18 months.

Wabtec Corporation has landed a $4.2 billion contract to supply 300 Evolution Series locomotives and long-term service agreements to Kazakhstan Temir Zholy (KTZ), the country’s state railway. The agreement, announced Sept. 22, is the largest locomotive order in Wabtec’s history.

The new units are designed for improved fuel efficiency and longer maintenance cycles, with production split between U.S. facilities and Wabtec’s Lokomotiv Kurastyru Zauyty plant in Astana, where final assembly will take place. The order also covers about 15 years of maintenance and support for KTZ’s expanding fleet.

Kazakhstan’s rail system is central to the “Middle Corridor,” the Trans-Caspian route linking China and Southeast Asia to Europe.

New orders for U.S.-manufactured durable goods rose in August after two straight months of declines, the Census Bureau reported Thursday. Orders increased 2.9% to $312.1 billion, following a 2.7% drop in July.

Transportation equipment drove the rebound, with orders jumping 7.9% to $110.2 billion after consecutive monthly decreases. Excluding transportation, durable goods orders rose 0.4%, while excluding defense, they climbed 1.9%.

The report highlights ongoing volatility in the manufacturing sector, where large orders for aircraft and vehicles often cause sharp swings. The August uptick suggests renewed demand in transportation but only modest gains across other industries.

China has launched a sweeping investigation into Mexico’s new tariffs on Chinese goods, warning the measures could harm its companies’ trade and investment interests. The move follows Mexico’s decision to impose a 50% tariff on Chinese cars and duties on about 1,400 other products, from textiles to steel.

Beijing’s commerce ministry said it would also review “other restrictive measures” Mexico has applied in recent years, and separately launched an anti-dumping probe into Mexican pecan exports.

Mexico, which imports far more from China than it exports, has justified the tariffs as a means of supporting its domestic industry. President Claudia Sheinbaum stated that Mexico was not seeking conflict and sought to maintain good relations with Beijing.

French shipping giant CMA CGM will acquire Freightliner’s UK Intermodal Logistics, expanding its reach into Britain’s inland transport network. The deal includes the Freightliner brand, inland terminals, and both rail and road operations.

The financial details were not disclosed, and the transaction is expected to close in 2026. CMA CGM, based in Marseille, stated that the acquisition will enhance its ability to connect sea, rail, and road freight more efficiently, while supporting growth in lower-carbon transport options.

Last year, Freightliner UK handled about 770,000 containers and operated across both rail and trucking services. Under the deal, it will continue as a standalone business within CMA CGM’s broader logistics network.

The White House has stepped in to prevent U.S. Steel from halting operations at its Granite City Works in Illinois, invoking the “golden share” authority tied to Nippon Steel’s $14.1 billion takeover of the American steelmaker.

Earlier this month, U.S. Steel notified workers that slab processing at Granite City would end in November, though roughly 800 employees would remain on payroll. The move drew immediate pushback from the United Steelworkers union, which said it violated Nippon Steel’s pledges to maintain U.S. operations.

Under the terms of the national-security agreement that cleared the Nippon deal, the administration holds veto power over closures, production transfers abroad, or other significant operational changes. Commerce Secretary Howard Lutnick told U.S. Steel CEO Dave Burritt the government would not allow Granite City to be idled. The company has since reversed the decision.

The Trump administration is seeking a 10% equity stake in Lithium Americas as part of ongoing talks to restructure a $2.26 billion federal loan backing its Thacker Pass mine in Nevada. The project, partly owned by General Motors, is slated to become the largest lithium source in the Western Hemisphere by 2028, producing enough material for up to 800,000 electric vehicles annually.

According to reports, the equity demand reflects the administration’s push to ensure taxpayer protection as lithium prices remain under pressure from Chinese oversupply. Lithium Americas has offered Washington warrants equivalent to 5–10% of its common shares in exchange for changes to repayment terms.

The Thacker Pass mine, already under construction with 600 workers on site, is viewed as central to U.S. efforts to reduce reliance on China, which controls more than 75% of global lithium refining. GM invested $625 million last year for a 38% stake and holds rights to most of the mine’s first-phase output, though Washington is also pressing GM to guarantee offtake volumes.