Trump’s Trade Gambit: Tariffs as a Tool to Force Onshoring

Donald Trump’s latest tariff threat appears to be more than just a trade barrier; it’s a strategic gambit designed to force foreign companies to move their manufacturing operations onto US soil. The proposed 100% duty on branded drugs, which has sent the UK pharmaceutical industry into a panic, is the most striking example of this high-stakes policy.
This strategy is evident in the analysis of market experts like Lale Akoner, who predicts the tariffs will selectively target companies without American production facilities. “Most global pharmaceutical giants… already have US plants under way, which likely keeps them out of the firing line,” she stated. This view is supported by Swiss firms Roche and Novartis, who believe their investments in US sites will shield them from the new duties.
For the UK, this development is deeply troubling. Its pharmaceutical sector was not included in a recent tariff deal with the US, leaving it completely exposed to this new policy. The British government has acknowledged the industry’s anxiety and is now in emergency talks with Washington, trying to secure an exemption for what it calls a “critical” part of its economy.
The policy extends beyond pharmaceuticals, with a 25% tariff threatened on heavy-duty trucks and 50% on kitchen and bathroom cabinets. This has drawn the ire of the German auto industry, which employs over 120,000 people in the US. They argue that such tariffs are counterproductive, ultimately harming US workers and consumers by disrupting well-established supply chains and driving up prices.
The episode serves as a powerful illustration of the Trump administration’s “America First” approach to trade. Diplomatic relationships and past promises, like the “preferential treatment” once offered to the UK, are secondary to the goal of boosting domestic manufacturing. This leaves international partners and businesses in a constant state of uncertainty, forced to adapt to a rapidly changing and often unpredictable set of rules.