Trump Targets Drugs, Furniture, Trucks With New Tariffs

Washington- President Donald Trump has said he will put import taxes of 100 per cent on pharmaceutical drugs, 50 per cent on kitchen cabinets and bathroom vanities, 30 per cent on upholstered furniture and 25 per cent on heavy trucks starting on October 1.
The posts on his social media site on Thursday showed that Trump's devotion to tariffs did not end with the trade frameworks and import taxes that were launched in August, a reflection of the president's confidence that taxes will help to reduce the government's budget deficit while increasing domestic manufacturing.

While Trump did not provide a legal justification for the tariffs, he appeared to stretch the bounds of his role as commander-in-chief by stating on Truth Social that the taxes on imported kitchen cabinets and sofas were needed“for National Security and other reasons.”

The tariffs are another dose of uncertainty for the US economy with a solid stock market but a weakening outlook for jobs and elevated inflation. These new taxes on imports could pass through to consumers in the form of higher prices and dampen hiring, a process that economic data suggests is already underway.

“We have begun to see goods prices showing through into higher inflation,” Federal Reserve Chair Jerome Powell warned in a recent news conference, adding that higher costs for goods account for“most” or potentially“all” of the increase in inflation levels this year.

The president has pressured Powell to resign, arguing that the Fed should cut its benchmark interest rates more aggressively because inflation is no longer a concern.

Trump said on Truth Social that the pharmaceutical tariffs would not apply to companies that are building manufacturing plants in the United States, which he defined as either“breaking ground” or being“under construction”. It was unclear how the tariffs would apply to companies that already have factories in the US.

In 2024, America imported nearly USD 233 billion in pharmaceutical and medicinal products, according to the Census Bureau. The prospect of prices doubling for some medicines could send shock waves to voters as health care expenses, as well as the costs of Medicare and Medicaid, potentially increase.

Pascal Chan, vice president for strategic policy and supply chains at the Canadian Chamber of Commerce, warned that the tariffs could harm Americans' health with“immediate price hikes, strained insurance systems, hospital shortages, and the real risk of patients rationing or foregoing essential medicines.”

The new tariffs on cabinetry could further increase the costs for homebuilders at a time when many people seeking to buy a house feel priced out by the mix of housing shortages and high mortgage rates. The National Association of Realtors on Thursday said there were signs of price pressures easing as sales listings increased 11.7 per cent in August from a year ago, but still the median price for an existing home was USD 4,22,600.

Trump said that foreign-made heavy trucks and parts are hurting domestic producers that need to be defended.

“Large Truck Company Manufacturers, such as Peterbilt, Kenworth, Freightliner, Mack Trucks, and others, will be protected from the onslaught of outside interruptions,” Trump posted.

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